Pivot Support Resistance Commodities Trading Indicator MetaTrader 4 Indicator

Pivot Support Resistance Indicator MT4 is a set of indicators used to determine potential turning points or potential commodity breakout points, also known as 'pivots' or pivot point. These Pivot Support Resistance Levels are calculated to determine points which the commodity trend could change from a 'bullish' to "bearish trend or from a 'bearish' to "bullish trend." Commodity traders use these Pivot Support Resistance Zones as zones of support and resistance.

These Pivot Support Resistance Levels are calculated as the average of the high, low & close from the previous session:

Commodity Pivot Point = (High + Low + Close) / 3

Commodities Trading day traders use the calculated pivot support resistance levels to determine levels of entry, stop loss level and profit taking level, by trying to determine where the majority of commodity traders might be doing the same thing.

A pivot is a commodity price level of significant commodity technical analysis that is used by traders as a predictive or leading indicator of commodity trading price movement. Pivot Support Resistance Indicator is calculated as an average of significant commodity prices (high, low and close commodity price) from the commodities trading market prior trading period. If the commodity prices in the following trading period trade above the central pivot point it is interpreted as a bullish commodity trend, whereas if commodity trading price trade below the central pivot point is interpreted as bearish.

The central pivot is used to calculate additional levels of support resistance, below & above central pivot - by either subtracting or adding commodity trading price differentials calculated from previous day trading ranges.

A pivot & the pivot support resistance levels are often turning points for the direction of commodity trading price movement.

• In an upward commodity trend, the pivot point indicator & the pivot resistance levels - represent a ceiling level for the commodity trading price - if commodity trading price goes above this level the upward trend is no longer sustainable and a commodity trend reversal is likely to happen.

• In a downwards commodity trend, the pivot-point and the pivot support levels may represent a low for commodity trading price level or a resistance to further commodity trading price decline.

Central pivot can then be used to calculate the support resistance areas as follows:

Pivot Support Resistance Indicator MetaTrader 4 consist of a central pivot point level surrounded by three support levels below it and three resistance levels above it. Pivot Support Resistance Levels provide a quick method for traders to get a general idea of how the commodities trading market will be moving during the course of the day by using a few simple calculations based on the previous commodity trading price close - Previous Day Close Breakout Strategy and Market Open Trading Strategies.

Pivot Support Resistance Indicator MetaTrader 4 is considered as a leading commodity technical indicator rather than a lagging indicator. All that is required to calculate the pivot support resistance levels for the upcoming (current) day is the previous day high, low, and close commodity prices. The 24-hour cycle pivot support resistance levels in this indicator are calculated according to the following formulas:

Central pivot can then be used to calculate the support resistance areas as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

Pivot Support Resistance Commodities Trading Indicator MetaTrader 4 Indicator - Pivot Support Resistance Commodities Trading Indicator MetaTrader 4