Pivot Points XAGUSD Technical Analysis and Pivot Points Trading Signals
This silver technical 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 silver markets. This silver technical technical indicator is considered to be leading rather than lagging.
Pivots provide a quick way for xagusd traders to analyze the general silver trend of how the xagusd trading market is going to be moving during the course of the day. A few simple calculations are used to draw the resistance and support levels.
To calculate these points for the coming trading day is the previous day's
- high,
- low, and
- close xagusd prices are used
The silver 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 the support & resistance areas as follows:
Resistance 3
Resistance 2
Resistance 1
Pivot Point
Support 1
Support 2
Support 3
XAGUSD Trading Technical Analysis & How to Generate Trading Signals
This silver technical indicator can be used in different ways to generate xagusd signals. The following techniques are the most common technical analysis:
Silver Trend Identification Trading Signals
The central pivot is used by xagusd traders to determine the general market silver 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
Silver Price Breakout Signals
Silver Price break out signals are generated as follows
- Buy signal- is generated when the xagusd price breaks upwards through the central point.
- Sell signal- is generated when the xagusd price breaks-out downwards through the central point.
Silver Price Breakout
Silver Price Reversal Trading Signal
Silver Price reversals are generated as follows
Buy Trading Signal- when xagusd 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 xagusd price moves up towards one of the resistance area, then touches the resistance or moves slightly through it then quickly reverses and moves downwards.
Silver Price Reversal Trading Signal
Setting Stoploss and Limit Profit Values
The central pivot and the other support and resistance levels are used by xagusd traders to determine suitable stop loss and limit profit levels.
Setting Stoploss & 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 Stop-Loss Silver Trading Order 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 MetaEditor, 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 MetaTrader 4, the indicator has additional lines named Mid-Points, to remove these additional lines open the MQL4 Language Meta Editor(shortcut keyboard key - press F4), & change line 16 from:
Extern bool midpivots = true:
To
Extern bool midpivots = false:
Then Press the Compile button again, & it'll then appear as exactly shown on this web site.
