Pivot Support Resistance Indicator MT4 Indicator

Pivot Support Resistance Indicator MT4 is a set of indicators used to determine potential turning points or potential gold breakout points, also known as 'pivots' or pivot point. These Pivot Support Resistance Levels are calculated to determine points which the gold trend could change from a 'bullish' to "bearish market trend or from a 'bearish' to "bullish trend." traders use these Pivot Support Resistance Zones as zones of support & resistance.

These Pivot Support Resistance Levels are calculated as the average of the high, low and close from the previous session:

Gold Pivot Point = (High + Low + Close) / 3

XAUUSD day traders use the calculated pivot support resistance levels to determine levels of entry, stop loss level and profit taking level, by trying to determine where the majority of gold traders might be doing the same thing.

A pivot-point is a price level of significant gold technical analysis that is used by traders as a predictive or leading indicator of price movement. Pivot Support Resistance Indicator is calculated as an average of significant prices (high, low and close price) from the market prior period. If the prices in the following trading period trade above the central pivot point it is interpreted as a bullish trend, whereas if price trade below the central pivot point is interpreted as bearish.

The central pivot-point is used to calculate additional levels of support resistance, below & above central pivot - by either subtracting or adding price differentials calculated from previous day trading ranges.

A pivot-point and the pivot support resistance levels are often turning points for the direction of price movement.

In an up-ward trend, the pivot point indicator and the pivot resistance levels - represent a ceiling level for the price - if price goes above this level the up-ward trend is no longer sustainable & a gold trend reversal is likely to happen.

In a down-wards gold trend, the pivot-point and the pivot support levels may represent a low for price level or a resistance to further price decline.

Center pivot can then be used to calculate the support resistance levels as follows:

Pivot Support Resistance Indicator MT4 consist of a central pivot point level surrounded by three support levels below it and three resistance levels above it. Pivot Support Resistance Levels provide a quick method for traders to get a general idea of how the market will be moving during the course of the day by using a few simple calculations based on the previous price close - Previous Day Close Break Out Strategy and Market Open Trading Strategies.

Pivot Support Resistance Indicator MT4 is considered as a leading indicator rather than a lagging indicator. All that is required to calculate the pivot support resistance levels for the upcoming (current) day is the previous day high, low, and close prices. The 24-hour cycle pivot support resistance levels in this indicator are calculated according to the following formulas:

Center pivot can then be used to calculate the support resistance levels as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

Potential Breakout Indicator - Pivot Support Resistance Indicator MT4 Indicator