Trend Indicators

Pivot Points are used by traders to find support and resistance zones based in previous day's price action.

This technical indicator is a very helpful tool that uses the previous bars' highs, lows and closings to project support & resistance zones for future bars.

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

Daily pivots points are calculated from the previous day's high, low, close

This indicator is illustrated and shown below

How Do I Add Pivot Points in Chart?

Technical Analysis in XAUUSD Trading

The central pivot point itself is the primary level, which is used to figure out the market trend

The other support and resistance zones are also crucial in calculating areas that can generate significant market moves.

This indicator can be used in two ways

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

The second method is to use these points to enter & exit the markets. This technical indicator is a helpful tool which can be used in calculating the levels which are likely to cause price movement.

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

This technical indicator can be used in numerous different ways. Here are a few of the most regular techniques for utilizing and using them.

XAU/USD Trend Direction: Combined with other analysis methods such as overbought/oversold oscillators, volatility measurements, the central point might be helpful in determining/figuring out the general trending market direction of the price. Trade Positions are only opened in the direction of the trend. Buy signal occurs only when the market is above the center pivot points & sell signal occur only when the market is below the central pivot points.

XAUUSD Price Breakouts: A bullish trading signal occurs when the market breaks up through the center pivot points or one of the resistances (generally Resistance Area 1). A bearish signal occurs when the market breaks out downward through the center points or one of the supports (typically Support Area 1).

XAU/USD Trend Reversals:

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

A sell signal occurs when price moves toward a resistance level, gets very close to it, touches it, or only moves 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 might be potentially helpful in determining suitable stoploss and/or limit profit placements. For examples, if trading a long breakout above the Resistance 1 it might be reasonable to position a stop loss order.

Combining Together 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 2 indicators give a trade signal in same direction.

How to Day Trade Using Pivot Points Levels and Reversal Trend Indicators

Moving Average Crossover Method

MA cross-over method that can be combined with this technical indicator to create a trading system for generating buy and sell signals.

To download Pivot points Indicator:

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

Once you download it. Open it with the MQ4 Language MetaEditor, Then Compile the indicator by pressing Compile Button & it'll be added to your MT4.

Note: Once you add it to your MT4, the technical indicator has additional lines named Mid Points, to remove the extra lines open MQL4 MetaEditor(short cut keyboard key - press F4), & change line 16 from:

Extern bool midpivots = true:

Extern bool midpivots = false:

Then Press Compile again, & it then will appear as is exactly displayed on this website.

Study More Topics and Tutorials:

Trade Forex Trading

Trend Indicators

Technical Analysis in XAUUSD Trading

Combining Together with Moving Average Crossover System