Forex Trading Pivot Points Analysis Signals
Pivot Points Indicator consists of a central forex pivot-point which is surrounded by Three resistance areas above and 3 support areas below the center pivot.
Pivot Points Technical Indicator is considered to be leading technical indicator.
Pivot Points Indicator provides a quick method for traders to analyze the general forex trend and analyze how the market is going to be moving during the day. A few calculations are used to draw the resistance and support levels for pivot point indicator.
To calculate these support and resistance levels for coming trading day - the previous day's
- high,
- low, and
- closing forex prices are used
The Forex trading day closes at 5:00PM EST and this daily closing time is when the Pivot Points Indicator is updated.
The 24 hour cycle for this Pivot Points Indicator are calculated using a complex formula - the central forex pivot-point is then used to calculate the support & resistance areas as follows:
Resistance Level 3
Resistance Level 2
Resistance Level 1
Forex Trading Pivot Point Technical Analysis
Support Level 1
Support Level 2
Support Level 3
Pivot Points Trading Indicator - Technical Analysis
Pivot Points Indicator can be used in different techniques to generate forex signals. The following strategies are the most commonly used technical analysis strategies:
Pivot Points Indicator Trend Identification
The central forex pivot point is used by traders to determine the forex trend direction. The forex trades opened by traders will only be in direction of this forex trend.
- Buy forex signal - bullish forex trend - forex price is above the central forex pivot point
- Sell forex signal - bearish forex trend - forex price is below the central forex pivot point
Pivot Points Indicator Price Break-out Signals
Forex price break-out signals are generated as follows
- Buy forex signal is generated when the price breaks upwards through the central forex pivot point.
- Sell forex signal is generated when the price breaks-out downwards through the central forex pivot point.
Pivot Points Indicator Price Breakout
Pivot Points Indicator Price Reversal Signal
Pivot Points Indicator Trading Price reversal signals are generated as follows
Buy forex signal - when price moves downward towards one of the pivot point support area, then touches the support levels or moves slightly through this support area then quickly reverses & moves upwards.
Sell forex signal - when price moves up toward one of the pivot point indicator resistance area, then touches the resistance area or moves slightly through this resistance area then quickly reverses and moves downward.
Pivot Points Indicator Price Reversal Signal
Setting Stop loss & Take Profit Levels
The central forex pivot-point & the other support levels and resistance levels of this pivot points indicator are used by traders to determine suitable forex stop loss setting levels and forex take profit areas.
Setting Forex Stop Loss Levels and Setting Forex Take Profit Levels
If a buy order is placed above the central forex pivot point the Resistance Level 1 or Resistance Level 2 can be used to set the take profit level, and the Support Level 1 can be used to set the StopLoss Level for the forex trade.
To download Forex Trading Pivot Points MT4 Indicator:https://c.mql5.com/21/9/pro4x_pivot_lines.mq4 Once you download the Pivot Points Trading Indicator - open the indicator with MQL4 Language Editor, Then Compile Pivot Points MT4 Indicator by pressing the Compile Button and Pivot Points MT4 Indicator will be added to your MT4 platform. NB: Once you add Pivot Points MT4 Indicator to your MetaTrader 4, the indicator has additional lines named Mid Points, to remove these additional Pivot Points MT4 Indicator lines open MQL4 Language Editor(shortcut keyboard key - press F4), and change line 16 from: extern bool midpivots = true: to extern bool midpivots = false: Then Press Compile again, and Pivot Points MT4 Indicator will then appear as exactly shown on this learn forex website.
