Bitcoin Pivot Points

Pivot points is a set of indicators developed by floor traders in the commodities markets to figure out the potential turning points, also referred to as "pivots". These points are calculated to figure out levels in which the sentiment of the bitcoin trend could change from "bullish" to "bearish." Bitcoin traders use these points as markers of support and resistance.

These points are calculated as the average mean of the high, low and close from the previous session:

BTCUSD Pivots Points = (High + Low + Close) / 3

Day traders use the calculated pivot points to figure out levels of entry, stops and profit taking, by trying to figure out where majority of other bitcoin traders may be doing the same.

A pivot is a bitcoin price level of significance in trading analysis of a financial trading market that is used by bitcoin traders as a predictive indicator of bitcoin price movement. It's calculated as an average of significant bitcoin prices (high, low & close) from the performance of a market in the prior period. If the bitcoin prices in the following period trade above the central point it's mostly evaluated as a bullish sentiment, whereas if bitcoin price below central point is seen as bearish.

The central point is used to calculate additional levels of support & resistance, below and above central point, respectively, by either subtracting or adding bitcoin price differentials calculated from previous ranges.

A pivot and the associated support & resistance levels are often turning points for the direction of bitcoin price movement in a market.

In an up btcusd trend, the pivot point & the resistance levels may represent a ceiling level for the bitcoin price. If bitcoin price goes above this level the up bitcoin trend is no longer sustainable & a bitcoin trend reversal may occur.

In a down bitcoin trend, a pivot point & the support levels may represent a low for bitcoin price level or a resistance to further decline.

The center pivot can then be used in calculating the support ==22==& resistance levels as follows:

Pivot points consist of a central point level surrounded by 3 support levels below it ==22==and three3 resistance areas above it. These points were originally used by floor traders on equity and futures exchanges because they provided a quick way for those traders to get a general idea of how the btcusd market was heading during the duration of day using a few calculations. However, over time they have also proved exceptionally helpful and useful in other markets as well.

One of the reasons they are now so popular is because they are considered a "leading" (or predictive) indicator rather than a lagging technical indicator. All that's needed to calculate these pivot point levels for the upcoming (current) day is the previous day's high, low, & close bitcoin prices. The 24-hour cycle pivot points in this trading indicator are calculated in accordance to the following formulas:

The center pivot can then be used in calculating the support ==22==& resistance levels as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

Pivot Points Support and Resistance Levels - Pivot Points BTC/USD Crypto Indicator Support & Resistance Levels

Pivot Point Support and Resistance Areas

Pivot Point as a Bitcoin tool

The pivot point line itself represents the level of highest resistance or support, depending on the overall sentiment. If the btcusd market is direction-less ( range bound ) bitcoin prices will often fluctuate greatly around this level until a bitcoin price breakout develops and forms. Bitcoin Prices above or below the central point shows the over-all sentiment as bullish or bearish respectively. This btcusd indicator is a leading indicator that provides signals of potentially new highs or lows within a given chart timeframe.

The support and resistance levels calculated from the central pivot point & the previous market width may be used as exit points of the open Bitcoin trade positions, but are rarely used as entry signals. For illustration, if the btcusd crypto price is up-trending & breaks through the pivot point, the first or second resistance area is often a good target to close-out a position, as the probability of resistance and reversal increases greatly, with every resistance level.

In pivot-point analysis 3 levels are commonly recognized above & below the central point. These are calculated from the range of bitcoin price movement in previous period ==22==& then added to the central point for resistances and subtracted from it for support zones.

Pivots Points

Pivot points levels can be used in many various ways. Here are a couple of the most regular methods for utilizing and using them:

BTCUSD Trend Direction: Combined with other Bitcoin analysis methods such as overbought/oversold oscillators, volatility measurements, etc., the central point might be helpful and useful in figuring out the overall trending direction of the price. Trades are only opened in direction of BTC/USD Crypto trend. Buy trade transactions occur only when the bitcoin price is above the central point & sell trade positions occur only when the bitcoin price is below the center pivot point.

BTCUSD Price Break Outs: In bitcoin price breakouts, a bullish buy cryptocurrency signal forms when the bitcoin price breaks upward through the center point or one of the resistance areas (commonly Resistance Level 1). A short sell cryptocurrency signal occurs and happens when bitcoin price breaks out downward through the center point or one of the support zones (often Support Area 1).

BTCUSD ==22==CryptoCryptoCurrency Trend Reversals: In btcusd trend reversals, a buy cryptocurrency signal forms when the bitcoin price moves towards a support zone, gets very near to it, touches this point, or only moves slightly/a little through this level, & then reverses & starts moving in the other direction.

To download Pivot points Indicator:

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.

Note: Once you as a trader add it to your MetaTrader 4, trading indicator has extra additional lines marked Mid Points, to remove these additional lines open the MQ4 Language MetaEditor(short cut keyboard key - press F4), and change line 16 from:

Extern bool midpivot = true:

Extern bool midpivot = false:

Then Press the Compile button again, & it'll then be shown as exactly shown & displayed on www.tradeforextrading.com web site.

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