Trade Gold Trading

Pivot Points Crude Oil 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 & trade the equities & futures markets. This indicator is considered to be leading rather than lagging.

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

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

• high,
• low, and
• close crude 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 areas as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

Oil Analysis & How to Generate Signals

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

Oil Trend Identification Signals

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

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

Oil Price Break-out Signals

Oil Price breakout signals are generated as follows

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

Oil Price Break-out

Oil Price Reversal Signal

Oil Price reversals are generated as follows

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

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

Oil Price Reversal Signal

Setting Stop loss & Limit Profit Values

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

Setting 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 Level for the trade.

To download this Pivot points technical Indicator:

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

Once you download the indicator. open it with the MQL4 Language Meta Editor, Then Compile the technical indicator by pressing the Compile Button Key and it will be added to your Meta Trader 4.

NB: Once you add it to your Meta Trader 4, the technical indicator has extra lines referred to as MidPoints, to remove the additional lines open MQL4 Meta Editor(shortcut key-board key - press F4), & change line 16 from:

Extern bool mid-pivots = true:

To

Extern bool mid-pivots = false:

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