Trend Indicators

Pivot Points are used by traders to find support & resistance zones based on the previous day's price action.

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

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

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

This indicator is illustrated below

Technical Analysis in XAUUSD Trading

The central pivot itself is the primary level, which is used to determine the market trend

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

This indicator can be used in two ways

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

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

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

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

XAUUSD Trend Direction: Combined with other analysis methods such as overbought/oversold oscillators, volatility measurements, the central point might be useful in determining the general trending direction of the market. Trades 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 (typically 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).

XAUUSD Trend Reversals:

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

• A sell signal occurs when price moves toward a resistance level, gets very close to it, touches it, or moves only slightly through it, & then reverses & moves back in opposite market direction.

Stop-Loss and/or Limit Profit Values Determined by Support/Resistance: This indicator might be potentially helpful in determining suitable stoploss &/or limit profit placements. For examples, if trading a long breakout above the Resistance 1 it might be reasonable to position a stoploss.

Combining 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 two indicators give a signal in same direction.

Moving Average Crossover Method

Moving average crossover method that can be combined with this indicator to create a trading system for generating buy and sell signals.

To download Pivot points Technical 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 MetaTrader 4, the technical indicator has additional lines named MidPoints, to remove the extra lines open MQL4 MetaEditor(short cut key-board key - press F4), & change line 16 from:

Extern bool midpivots = true:

To

Extern bool midpivots = false:

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

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