Pivot Points Technical Analysis & Pivot Point Signals

Pivot Points Indicator consists of a central pivot which is surrounded by 3 resistance levels above & Three support levels below the center pivot-point.

Pivot Points Indicator is considered to be leading technical indicator.

Pivot Points Indicator provides a quick method for traders to analyze the general trend and analyze how the market is going to be moving during the day. A few calculations are used to plot the resistance & support levels for pivot point indicator.

To calculate these support & resistance areas for the coming day - the previous day's

• high,
• low, and
• closing prices are used

The trading day closes at its specified time and this daily closing time is when the Pivot Points Indicator is updated.

24-hour cycle for this Pivot Points Indicator are calculated using a complex formula - the central pivot is then used to calculate the support and resistance areas as follows:

Resistance Level 3

Resistance Level 2

Resistance Level 1

XAUUSD Pivot Point Technical Analysis

Support Level 1

Support Level 2

Support Level 3

Technical Analysis in XAUUSD Trading

Pivot Points Indicator can be used in different techniques to generate signals. Following strategies are the most oftenly used analysis strategies:

Pivot Points Indicator Trend Identification

The central pivot point is used by traders to determine the trend direction. The gold trades opened by traders will only be in the direction of this trend.

• Buy signal - bullish trend -price is above the central pivot point
• Sell signal - bearish trend -price is below the central pivot point

Pivot Points Indicator Price Break Out Signals

XAUUSD price break out signals are generated as follows

• Buy signal is generated when the price breaks upwards through the central pivot point.
• Sell signal is generated when the price breaks-out downwards through the central pivot point.

Pivot Points Indicator Price Break out

Pivot Points Indicator Price Reversal Signal

Pivot Points Indicator Price reversal signals are generated as is explained below

Buy signal - when price moves downward toward one of the pivot-points indicator support level, then touches support zones or moves slightly through this support area then quickly reverses and moves upwards.

Sell signal - when price moving up towards one of the pivot point resistance area, then touches resistance level or moves slightly through this resistance area then quickly reverses and moves downwards.

Pivot Points Indicator Price Reversal Signal

Setting Stoploss and Take Profit Order Levels

The central pivot point & the other support levels & resistance levels of this pivot points indicator are used by traders to determine suitable stop loss setting levels & take profit areas.

Setting Stop Loss Order Levels & Setting Take Profit Order Levels

If a buy order is placed above the central pivot point the Resistance Level 1 or Resistance Level 2 can be used to set the take profit level, and the Support Level 1 can be used to set the Stop Loss Order Level for the gold trade transaction.

To download Pivot Points MT4 Indicator: https://c.mql5.com/21/9/pro4x_pivot_lines.mq4 Once you download the Pivot Points Indicator - open the indicator with MQL4 Language Editor, Then Compile Pivot Points MT4 Indicator by pressing the Compile Button and Pivot Points MT4 Indicator will be added to your MT4 software. NB: Once you add Pivot Points MT4 Indicator to your MT4, the indicator has additional lines named Mid Points, to remove these additional Pivot Points MT4 Indicator lines open MQL4 Language Editor(shortcut keyboard key - press F4), and change line 16 from: extern bool midpivots = true: to extern bool midpivots = false: Then Press Compile Button again, and Pivot Points MT4 Indicator will then appear as exactly shown on this learn website.