Pivot Support Resistance XAUUSD Indicator MT4 Indicator

Pivot Support Resistance Indicator MetaTrader 4 is a set of indicators used to determine potential turning points or potential gold breakout points, also known as "pivots" or pivot point. These Pivot Support Resistance Levels are calculated to determine points which the gold trend could change from "bullish" to "bearish or from "bearish" to "bullish." Gold traders use these Pivot Support Resistance Levels as zones of support resistance.

These Pivot Support Resistance Levels are calculated as the average of the high, low and close from the previous session:

Gold Pivot Point = (High + Low + Close) / 3

XAUUSD day traders use the calculated pivot support resistance levels to determine levels of entry, stop loss level and profit taking level, by trying to determine where the majority of gold traders may be doing the same thing.

A pivot point is a xauusd price level of significant gold technical analysis that is used by gold traders as a predictive or leading indicator of xauusd price movement. Pivot Support Resistance Indicator is calculated as an average of significant xauusd prices (high, low and close xauusd price) from the xauusd market prior trading period. If the xauusd prices in the following trading period trade above the central pivot point it is interpreted as a bullish gold trend, whereas if xauusd price trade below the central pivot point is interpreted as bearish.

The central pivot point is used to calculate additional levels of support resistance, below and above central pivot point - by either subtracting or adding xauusd price differentials calculated from previous day trading ranges.

A pivot point and the pivot support resistance levels are often turning points for the direction of xauusd price movement.

• In an upward gold trend, the pivot point indicator and the pivot resistance levels - represent a ceiling level for the xauusd price - if xauusd price goes above this level the upward gold trend is no longer sustainable and a gold trend reversal is likely to happen.

• In a downward gold trend, the pivot point and the pivot support levels may represent a low for xauusd price level or a resistance to further xauusd price decline.

The central pivot point can then be used to calculate the support resistance levels as follows:

Pivot Support Resistance Indicator MetaTrader 4 consist of a central pivot point level surrounded by three support levels below it and three resistance levels above it. Pivot Support Resistance Levels provide a quick method for xauusd traders to get a general idea of how the xauusd market will be moving during the course of the day by using a few simple calculations based on the previous xauusd price close - Previous Day Close Breakout Strategy and Market Open Trading Strategies.

Pivot Support Resistance Indicator MetaTrader 4 is considered as a leading gold indicator rather than a lagging indicator. All that is required to calculate the pivot support resistance levels for the upcoming (current) day is the previous day high, low, and close xauusd prices. The 24-hour cycle pivot support resistance levels in this indicator are calculated according to the following formulas:

The central pivot point can then be used to calculate the support resistance levels as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

Potential Breakout XAUUSD Indicator - Pivot Support Resistance XAUUSD Indicator MT4 Indicator