Trade Gold Trading

Pivot Points CFDs Analysis & Pivot Points 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 and futures markets. This technical indicator is considered to be leading rather than lagging.

Pivots provide a quick way for cfds 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 trading day is the previous day's

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

The 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. The central pivot is then used to calculate support and resistance levels as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

CFDs Analysis & Generating Signals

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

CFD Trend Identification Signals

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

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

CFD Price Breakout Signals

CFD Price break out signals are generated as follows

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

CFD Price Breakout

CFD Price Reversal Signal

CFD Price reversals are generated as follows

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

CFD Price Reversal Signal

Setting Stop loss and Limit Profit Values

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

Setting 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 the StopLoss Order Level 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 MQL4 Language MetaEditor, Then Compile the indicator by pressing the Compile Button & it will be added to your MetaTrader 4.

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

Extern bool midpivots = true:

To

Extern bool midpivots = false:

Then Press Compile button again, & it will then appear as is exactly shown on this website.