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 considered to be leading rather than lagging.

Pivots provide a quick way for traders to analyze the general trend of how the market is going to be moving during the course of the trading day. A few simple calculations are used to plot the resistance & support levels.

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

• high,
• low, and
• close prices are used

The trading day closes & this daily closing time is when the 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 zones as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Points

Support 1

Support 2

Support 3

Trading Analysis and How to Generate Signals

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

Gold Trend Identification Signals

The central pivot is used by traders to determine the general market trend direction. The trades taken will only be in the direction of the market trend.

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

Gold Price Break Out Signals

Gold Price break out signals are generated as follows

• Buy signal - gets generated when price breaks-out up-ward through the central point.
• Sell signal - gets generated when price breaks out downward through the central point.

Gold Price Break Out

Gold Price Reversal Trading Signal

Gold Price reversals are generated as follows

Buy XAUUSD 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 moves upward.

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

Gold Price Reversal Trading Signal

Placing Stop loss & Limit Profit Values

The central pivot and the other support & resistance zones are used by traders to determine suitable stop loss and limit profit levels.

Placing Stop loss & 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 technical 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 and it'll be added to your MT4.

NB: Once you add it to your MetaTrader 4 Platform, indicator has additional lines named Mid Points, to remove these additional lines open MQ4 Language Meta Editor(short cut keyboard key - press F4), and change line 16 from:

Extern bool midpivots = true:

To

Extern bool midpivots = false:

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