Pivot Points XAUUSD Analysis & Pivot Point Trading Signals

This indicator consists of a central pivot which is surrounded by Three resistance levels below and Three support levels above.

Initially these points were used by floor traders to analyze and trade the equities & futures markets. This indicator is regarded to be leading rather than lagging.

Pivots provide a quick way for the Gold traders to analyze the overall trend of how the market is going to be moving during the duration of the day. A few simple calculations are used to plot the resistance and support areas.

To calculate these points for the coming trading day, the previous trading day's

high,
low, and
close prices are used

The trading day closes and this daily closing time is when the technical indicator is updated.

The 24-hour cycle for this indicator are calculated using a complex formula. The central pivot is then used to calculate the support and resistance levels as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Points

Support 1

Support 2

Support 3

Pivot Indicator Levels - MT4 Pivot Points Indicator - How Do I Place Pivot Points Indicator on XAUUSD Chart?

Analysis and How to Generate Trading Signals

This indicator can be used in various ways to generate signals. The following techniques are the most common trading analysis:

Gold Trend Identification Signals

The center pivot point is used by the Gold traders to determine the general price trend direction. The trades taken will only be in the direction of the price trend.

Buy signal - price is above the center pivot point
Sell trading signal - price is below the central pivot point

Gold Price Break Out Signals

Gold Price break out signals are derived/generated as follows

Buy signal - gets derived and generated when the price breaks out upward through the central point.
Sell signal - gets generated when price breaks-out downwards through the central point.

Pivot Point Indicator Levels - Pivot Points Indicator Analysis

Gold Price Break Out

Gold Price Reversal Signal

Gold Price reversals are derived/generated as follows

Buy Gold Signal- when the price moves down toward one of the support level, then touches support or moves just slightly through it then quickly reverses and heads and moves upwards.

Sell Trading Signal- when price moves up toward one of the resistance zone, then touches the resistance or moves slightly through it then quickly reverses and moves downward.

How to Set Trading Pivot Points Indicator on XAU/USD Chart

Gold Price Reversal Trading Signal

Placing Stop loss and Limit Profit Values

The center pivot and the other support and resistance levels are used by the Gold traders to determine suitable stop loss order and limit profit levels.

Pivot Points Indicator Analysis - Pivot Points Indicator Analysis

Placing Stop loss and Limit Profit

If a buy is placed above the central point the Resistance 1 or Resistance 2 can be used to set the take profit level, & the Support 1 can be set as a StopLoss Order Area for the trade.

To Download Pivot Points Indicator:

https://c.mql5.com/21/9/pro4x_pivot_lines.mq4

Once you download it. Open it with the MQ4 Language MetaEditor, Then Compile the indicator by pressing the Compile Button Key & it will be added to your MT4.

NB: Once you as a trader add it to your MT4 Platform, trading indicator has extra additional lines named and marked Mid Points, to remove the extra lines open MQL4 Language Meta-Editor(short cut keyboard key - press F4), and change line 16 from:

Extern bool midpivots = true:

Extern bool mid-pivots = false:

Then Press the Compile button again, and it will then appear as depicted on this web site.

Learn More Topics & Courses:

Trade Gold Trading

Pivot Points XAUUSD Analysis & Pivot Point Trading Signals

Analysis and How to Generate Trading Signals