Trend Technical Indicators

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

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

This indicator provides an idea of where key support and 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 shown below

Technical Analysis in Gold Trading

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

The other support and resistance levels are also important 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 upward movement, then the market is bullish, and vice versa. However, pivot levels are short-term 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 indicator is a useful tool that can be used to calculate the areas that are likely to cause price movement.

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

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

XAUUSD Trend Direction: Combined with other analysis techniquesmethods 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 and sell signal occur only when the market is below the center pivot points.

XAUUSD Price Breakouts: A bullish 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 down through the center point points or one of the supports (typically Support Level 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 opposite 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 and moves back in opposite 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 come up with a 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 MQL4 Language MetaEditor, Then Compile the technical indicator by pressing Compile Button and it'll be added to your MetaTrader 4.

Note: Once you add it to your MetaTrader 4, the indicator has additional lines named MidPoints, to remove the additional lines open MQL4 Meta Editor(shortcut key-board key - press F4), and change line 16 from:

Extern bool midpivots = true:

To

Extern bool midpivots = false:

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