Pivot Points Metals Analysis & Pivot Points Trading Signals

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

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

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

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

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

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

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

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

Metals Analysis & How to Generate Trading Signals

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

Metals Trend Identification Trading Signals

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

• Buy signal - metals price is above the central point
• Sell signal - metals price is below the central point

Metals Trading Price Break out Signals

Metals Price breakout signals are generated as follows

• Buy signal- is generated when the metals price breaks upwards through the central point.
• Sell signal- is generated when the metals price breaks-out downward through the central point.

Metals Price Breakout

Metals Price Reversal Trading Signal

Metals Price reversals are generated as follows

Buy Trading Signal- when metals price moves down towards one of the support level, then touches the support or moves slightly through it then quickly reverses and moves upwards.

Sell Trading Signal- when metals price moves up towards one of the resistance area, then touches the resistance or moves slightly through it then quickly reverses and moves downwards.

Metals Price Reversal Trading Signal

Setting Stoploss and Limit Profit Values

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

Setting Stoploss 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 Stop-Loss Metals Order Level for the trade.

To download Pivot points:

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

Once you download it open it with MQL4 Language Meta Editor, Then Compile the technical indicator by pressing Compile Button Key and it'll be added to your MT4.

Note: Once you add it to your MT4, the indicator has additional lines named Mid Points, to remove these additional lines open the MQL4 Language Meta Editor(shortcut keyboard key - press F4), and change line 16 from:

Extern bool midpivots = true:

To

Extern bool midpivots = false:

Then Press the Compile button again, & it'll then appear as exactly shown on this website.