How to Use Pivots Points for Day Trading

Pivot Points are used by traders to find support and resistance levels based on the previous day's energies trading price action.

This energies indicator is a very useful tool that use the previous bars' highs, lows and closings to project support and resistance levels for future bars.

This energies indicator provides an idea of where key support and resistance should be. Place the pivot points on your energies charts and energies price will bounce off one of these levels. These levels are used by traders to determine market tops, market bottoms or energies trend reversals.

• Daily pivots points are calculated from previous trading day's high, low, close

This energies indicator is shown below

Technical Analysis in Energy Trading

The central pivot itself is the primary level, which is used to determine the trend

The other support and resistance levels are also important in calculating areas that can generate significant market movements.

This energies indicator can be used in 2 ways

The first way is for determining overall Energies trend: if the pivot point is broken in an upward movement, then the energies market is bullish, and vice versa. However, pivot levels are short-term energies trend indicators, useful for only one day until they need to be recalculated.

The second method is to use these points to enter and exit the energies markets. This energies indicator is a useful tool that can be used to calculate the areas that are likely to cause energies trading price movement.

These points should be used conjunction with other forms of technical analysis such as Moving averages, MACD and stochastic oscillator.

This energies indicator can be used in many different ways. Here are a few of the most common methods for utilizing them.

Energies Trend Direction: Combined with other technical analysis techniques such as overbought/oversold oscillators, volatility measurements, the central point may be useful in determining the general trending direction of the market. Trades are only taken in direction of the Energies trend. Buy signal occurs only when the energies market is above the central pivot and sell signal occur only when the energies market is below the central pivot.

Energies Trading Price Breakouts: A bullish signal occurs when the energies market breaks up through the central pivot or one of the resistances (typically Resistance 1). A bearish signal occurs when the energies market breaks down through the central point or one of the supports (typically Support 1).

Energies Trend Reversals:

• A buy signal occurs when the price moves towards a support level, gets very close to it, touches it, or moves only slightly through it, and then reverses and moves back in opposite direction.

• A sell signal occurs when the price moves towards a resistance level, gets very close to it, touches it, or moves only slightly through it, and then reverses and moves back in opposite direction.

Stop Loss &/or Limit Profit Values Determined by Support/Resistance: This energies indicator may be potentially helpful in determining suitable stoploss and/or limit profit placements. For example, if trading a long breakout above the Resistance 1 it may be reasonable to position a stoploss.

Combining with Moving Average Crossover System

A good indicator to combine and trade reversal energies signals is the moving average crossover which can be used to confirm the direction of a reversal energies signal.

An investor can then open an order once these two indicators give a trading signal in same direction.

Moving Average Crossover Method

Moving average crossover method that can be combined with this indicator to come up with a energies system for generating buy & sell energies trade signals.

To download Pivot points:

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

Once you download it open it with MQL4 Language Editor, Then Compile it by pressing the Compile Button & it will be added to your MT4.

Note: Once you add it to your MetaTrader 4, the indicator has additional lines named Mid Points, to remove these additional lines open the MQL4 Language MetaEditor(shortcut keyboard key - press F4), & change line 16 from:

Extern bool midpivots = true;

To

Extern bool midpivots = false;

Then Press Compile again, and it'll then appear as exactly shown on this web site.