Pivot Points EA Setup - Setting Up Pivot Points Expert Advisor

Pivot Points EA Setup - Setting Up Pivot Points Expert Advisor - A trader can come up with an Pivot Points EA based on the Pivot Points indicator explained below.

Pivot Points EA rules can be combined with other Forex technical indicators to come up with other Expert Advisor Forex Robots that trade using rules based on two or more indicators combined to form a trading system.

Pivot Points Forex Trading Technical Analysis & Pivot Points Signals

This indicator consists of a central pivot which is surrounded by 3 resistance areas above and 3 support levels below.

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

Pivots provide a quick way for forex 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 Forex trading day closes at 5:00PM EST this daily market closing time is when the technical 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

Pivot Points EA Setup

Forex Analysis and Generating Signals

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

Trend Identification Signals

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

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

Price Breakout Signals

Price breakout signals are generated as follows

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

Price Breakout - Forex Pivot Points EA Setup

Price Reversal Signal

Price reversals are generated as follows

Buy FX Signal- when the price moves down toward one of the support area, then touches support or moves just slightly through it then quickly reverses and moves upward.

Sell Signal- when price moves up toward one of the resistance area, then touches the resistance or moves slightly through it then quickly reverses and moves downward.

Price Reversal Signal - Forex Pivot Points EA Setup

Setting Stop loss & Limit Profit Values

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

Setting Stop loss and Limit Profit - Pivot Points EA Setup

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 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 and it will be added to your MetaTrader 4.

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

Extern bool midpivots = true:

To

Extern bool midpivots = false:

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