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Pivot Points BTCUSD Analysis and Pivot Point Trade Signals

This BTCUSD tool has a main pivot point. It sits between three resistance lines below and three support lines above.

Initially these points were used by floor traders to analyze & trade the equities and futures markets. This btcusd technical indicator is considered to be leading rather than lagging.

Pivots provide a quick way for traders to analyze and interpret the general bitcoin trend of how the btcusd market is going to be moving during the course of the day. A few simple calculations are used to draw the resistance and support zones.

To calculate these points and levels for the coming day is the previous day's

  • high,
  • low, and
  • close bitcoin prices are used

The trading session concludes at a set time each day, and it is precisely at this daily closing marker that the trading indicator receives its subsequent update.

The 24-hour cycle for this technical indicator uses a pretty complex formula. After that, the central pivot helps you figure out support and resistance levels.

Resistance 3

Resistance 2

Resistance 1

Pivot Points

Support 1

Support 2

Support 3

Pivot Points Bitcoin Indicator - Pivot Points Best BTCUSD Indicator Combination

BTC USD Crypto Analysis and Generating Signals

This btcusd indicator can be utilized in a variety of methods to create trade signals. The following techniques are the most frequently employed in technical analysis:

Bitcoin Trend Identification Signals

Traders utilize the central pivot point to ascertain the general market trajectory for Bitcoin: any trades executed will only proceed in alignment with that established trend direction.

  • Buy signal - price is above central pivots point
  • Sell trading signal - price is below central pivots point

Bitcoin Price Breakout Signals

Bitcoin Price breakout signals are derived and generated as follows

  • Buy signal- is generated when the bitcoin price breaks upwards through the central point.
  • Sell signal- is generated/derived when the bitcoin price breaks-out downward through the central point.

Bitcoin Price Breakout above Pivot Points Technical Indicator - How to Set Pivot Points Bitcoin Indicator in Bitcoin Chart

Bitcoin Price Break out

BTCUSD Price Reversal Signal

Bitcoin Price reversals are derived/generated as follows

Buy Signal - when the price of bitcoin decreases toward a support level, then makes contact with that support or dips slightly below before swiftly bouncing back upwards.

Sell Signal- when bitcoin price goes up toward a resistance area, and either touches the resistance or goes a little past it, then quickly turns around and goes down.

Bitcoin Price Reversal Bitcoin Signal Pivot Points Trading - Pivot Points Best Indicator Combination

Bitcoin Price Reversal Signal

Placing Stoploss and Limit Profit Values

Traders use the central pivot plus support and resistance to set stop losses and take-profit spots.

Setting Stop loss & Limit Profit Support Resistance Levels - Pivot Points Best BTCUSD Indicator Combination

Placing Stoploss and Limit Profit

Place a buy order above the center line. Use Resistance 1 or 2 for take profit. Set Support 1 as stop loss for the Bitcoin 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 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 Meta Trader 4, indicator has additional lines marked Mid Points, to remove these additional lines open the MQL4 Language MetaEditor(shortcut keyboard key - press F4), and change line 16 from:

Extern bool midpivot = true:

To

Extern bool midpivot = false:

Then, press the Compile button again: it will then render and display precisely as shown on this web page.

Study More Tutorials & Lessons:

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