Trade Forex Trading

Introducing Broker - Introducing Traders to Forex Brokers

How to Use Pivots Points for Day Trading

Pivot Points are used by traders to find support and resistance levels based on the previous day's price action.

 

This indicator is a very useful tool that use the previous bars' highs, lows and closings to project support and resistance levels for future bars.

 

This indicator provides an idea of where key support and resistance should be. Place the pivot points on your currency charts and price will bounce off one of these levels. These levels are used by investors to determine market tops, market bottoms or trend reversals.

 

  • Daily pivots points are calculated from previous day's high, low, close which ends at 5.00pm EST(2100 GMT)

 

This indicator is shown below

How to Interpret and Use Pivot Points in Forex Trading

 

 

Technical Analysis

The central pivot itself is the primary level, which is used to determine the trend

 

The other support and resistance levels are also important in calculating areas that can generate significant market movements.



This indicator can be used in two ways

The first way is for determining overall Forex trend: if the pivot point is broken in an upward movement, then the market is bullish, and vice versa. However, pivot levels are short-term trend indicators, useful for only one day until they need to be recalculated.

 

The second method is to use these points to enter and exit the markets. This indicator is a useful tool that can be used to calculate the areas that are likely to cause price movement.

 

These points should be used conjunction with other forms of technical analysis such as Moving averages, MACD and stochastic oscillator.

 

This indicator can be used in many different ways. Here are a few of the most common methods for utilizing them.

 

Trend Direction: Combined with other technical analysis techniques such as overbought/oversold oscillators, volatility measurements, the central point may be useful in determining the general trending direction of the currency exchange market. Trades are only taken in the direction of the Forex trend. Buy signal occurs only when the market is above the central pivot and sell signal occur only when the market is below the central pivot.

 

Price Breakouts: A bullish signal occurs when the market breaks up through the central pivot or one of the resistances (typically Resistance 1). A bearish signal occurs when the market breaks down through the central point or one of the supports (typically Support 1).

 

Regulated Forex Broker

Takes 4 to 6 weeks to open an account if you don't follow the correct procedure;

Follow the correct procedure and open your account in 5 minutes, Open Early: Read The Article "Account Opening Procedure"

Risk Appetite Market Sentiment: Risk Appetite Trading in the Forex Market

Eurozone Market Sentiment: Eurozone Economic Growth Gains Momentum Fueling Risk Appetite Trading in Forex

If you are not going to open an account, what is the use of learning Forex tutorials on this website: Open an Account First

185 XM Accounts Successfully Opened through TradeForexTrading, Traders Accounts Presence in 54 countries, Over 100,000 trades Executed: Be Part of Trade Forex Trading Success - Open an Account Here and Help Us get to 1,000 XM Accounts

 

Forex Trend Reversals:

  • A buy signal occurs when the price moves towards a support level, gets very close to it, touches it, or moves only slightly through it, and then reverses and moves back in the opposite direction.

 

  • A sell signal occurs when the price moves towards a resistance level, gets very close to it, touches it, or moves only slightly through it, and then reverses and moves back in the opposite direction.

 

Stop loss and/or Limit Profit Values Determined by Support/Resistance: This indicator may be potentially helpful in determining suitable stop loss and/or limit profit placements. For example, if trading a long breakout above the Resistance 1 it may be reasonable to position a stop loss.

 

 

Combining with Moving Average Crossover System

A good indicator to combine and trade reversal signals is the moving average crossover which can be used to confirm the direction of a reversal signal.

 

An investor can then open an order once these two indicators give a signal in the same direction.

Moving Average Crossover Method with Pivot Points Indicator

Moving Average Crossover Method

 

Moving average crossover method that can be combined with this indicator to come up with a trading system for generating buy and sell signals.

 

To download Pivot points:

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

Once you download it open it with MQL4 Language Editor, Then Compile it by pressing the Compile Button and it will be added to your MT4.

NB: Once you add it to your MT4, the indicator has additional lines named Mid Points, to remove these additional 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 it will then appear as exactly shown on this website.

Always click an advertisement after reading an article (give and take & let us help each other, don't also forget to tell others about us the same way others told you about us);

Don't Miss opportunity to trade EURUSD Upward Parabolic Forex Trend;

Parabolic Forex Trend: Momentum and Parabolic Forex Trends - Different Type of Market Technical Analysis

185 XM Accounts Successfully Opened through TradeForexTrading, Traders Accounts Presence in 54 countries, Over 100,000 trades Executed: Be Part of Trade Forex Trading Success - Open an Account Here and Help Us get to 1,000 XM Accounts

Poland FX Seminar Gala

XM Account Holders Attend Poland FX Seminar

XM Account Holders Hungary Seminar

Malaysia Seminar

XM Account Holders Phillipines Seminar

XM Account Holders Thailand Seminar

XM Forex Broker Regulation Licenses

How a Real Forex Account Looks Like

How A Real Forex Trading Account Looks Like

Up To $6.67 Dollars Bonus for Every Lot Traded

Loyalty Bonus Points - Up To $6.67 Dollars Bonus For Every Lot Traded

Forex Trading Accounts Members Area - Withdraw and Deposit Options

Real Forex Trading Account Withdraw and Deposit Options

XMP Forex Loyalty Bonus Program

Forex Loyalty Bonus Program

Silver and Gold Online Trading

XM Rally Car

Regulated Broker

 

Open Forex Account

Open Demo Account
Open Real Account

Forex Broker Rankings

Up To $5K Bonus

Forex Account Opening Bonus