Pivot Support Resistance Technical Indicator MetaTrader 4 Indicator
Pivot Support Resistance Technical 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 Areas 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 the Pivot Support Resistance Zones as zones of support & resistance.
These Pivot Support Resistance Areas are calculated as the average of the high, low & close from the previous session:
XAUUSD Pivot Point = (High + Low + Close) / 3
XAUUSD day traders use the calculated pivot support resistance zones to determine levels of entry, stop loss level & 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 Technical Indicator is calculated as an average of significant prices (high, low & close price) from the market prior period. If the prices in the following trading period trade above the central pivot point it's 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 & the pivot support resistance zones are often turning points for the direction of price movement.
- In an upwards 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 occur.
- In a down-wards gold trend, the pivot-point and the pivot support areas may represent a low for price level or a resistance to further price decline.
Center pivot then can be used to calculate the support resistance zones as follows:
Pivot Support Resistance Technical Indicator MT4 consist of a central pivot point level surrounded by three support areas below it and three resistance zones 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 trading day by using a few simple math calculations that are based on the prior price close - Previous Day Close Break Out Strategy and Market Open Trading Strategies.
Pivot Support Resistance Technical Indicator MT4 is considered as a leading indicator rather than a lagging indicator. All that's required to calculate the pivot support resistance zones for the upcoming (current) day is the previous day high, low, & close prices. The 24-hour cycle pivot support resistance zones in this trading indicator are calculated according to the following formulas:
Center pivot can then be used to calculate the support resistance zones as follows:
Resistance 3
Resistance 2
Resistance 1
Pivot Point
Support 1
Support 2
Support 3
Potential Breakout Indicator - Pivot Support Resistance Technical Indicator MT4 Indicator
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