Trade Gold Trading

Pivot Points XAGUSD Analysis & Pivot Points Trading Signals

This 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 markets. This indicator is considered to be leading rather than lagging.

Pivots provide a quick way for xagusd traders to analyze the general 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 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

Trading Analysis and How to Generate Trade Signals

This 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 trend direction. The trades taken will only be in direction of the market trend.

• Buy signal - price is above the center pivots point
• Sell signal - price is below center pivots point

Silver Price Break-out 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 Break-out

Silver Price Reversal Trading Signal

Silver Price reversals are generated as follows

Buy Trading Signal- when 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 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 Trading Order Level for the trade.

To download Pivot points Indicator:

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

Once you download it open it with MQL4 Language MetaEditor, Then Compile the 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), and change line 16 from:

Extern bool mid-pivots = true:

To

Extern bool mid-pivots = false:

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