Pivot Points CFD Technical Analysis and Pivot Points CFDs Signals
This cfds 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 cfd markets. This cfds technical technical indicator is considered to be leading rather than lagging.
Pivots provide a quick way for cfds traders to analyze the general cfd trend of how the cfd market is going to be moving during the course of the day. A few simple calculations are used to plot the resistance and support levels.
To calculate these points for the coming trading day is the previous day's
- high,
- low, and
- close cfd prices are used
The cfds trading day closes at 5:00PM EST this daily market closing time is when the technical 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
CFD Technical Analysis and Generating CFDs Signals
This cfds technical indicator can be used in different ways to generate cfds signals. The following techniques are the most common technical analysis:
CFD Trading Trend Identification Signals
The central pivot is used by traders to determine the general market cfd trend direction. The trades taken will only be in the direction of the trend.
- Buy trading signal - price is above the central point
- Sell trading signal - price is below the central point
CFD Price Breakout Signals
CFD Price break out signals are generated as follows
- Buy signal - is generated when the price breaks-out upwards through the central point.
- Sell signal - is generated when price breaks-out downward through the central point.
CFD Price Breakout
CFD Price Reversal CFD Signal
CFD Price reversals are generated as follows
Buy CFD Signal- when price moves downward towards one of the support level, then touches support or moves slightly through it then quickly reverses & moves upwards.
Sell Trading Signal- when price moves upward towards one of the resistance area, then touches resistance or moves slightly through it then quickly reverses & moves downwards.
CFD Price Reversal CFD Signal
Setting Stoploss and Limit Profit Values
The central pivot & the other support & resistance zones are used by 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 a Stop-Loss CFD 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 Meta Editor, Then Compile the technical indicator by pressing Compile Button & it'll be added to your MetaTrader 4.
Note: Once you add it to your MT4, the technical indicator has additional lines named MidPoints, to remove the additional lines open MQL4 Meta Editor(short cut key-board key - press F4), & change line 16 from:
Extern bool midpivots = true:
To
Extern bool midpivots = false:
Then Press Compile button again, & it will then appear as exactly illustrated on this web site.
