Pivot Support Resistance Indicator MetaTrader 4 Indicator

Pivot Support Resistance Indicator MetaTrader 4 is a set of indicators used to determine potential turning points or potential xauusd trading breakout points, also known as "pivots" or pivot point. These Pivot Support Resistance Levels are calculated to determine points which the xauusd trend could change from a "bullish" to "bearish trend or from a "bearish" to "bullish trend." XAUUSD traders use these Pivot Support Resistance Zones as zones of support & resistance.

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

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

XAUUSD 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 xauusd traders may be doing the same thing.

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

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

A pivot and the pivot support resistance levels are often turning points for the direction of gold price movement.

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

• In a downward xauusd trend, the pivot point & the pivot support levels may represent a low for gold price level or a resistance to further gold price decline.

The central pivot-point 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 xauusd market will be moving during the course of the day by using a few simple calculations based on the previous gold price close - Previous Day Close Breakout Strategy and Market Open Trading Strategies.

Pivot Support Resistance Indicator MetaTrader 4 is considered as a leading xauusd 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 gold prices. The 24-hour cycle pivot support resistance levels in this indicator are calculated according to the following formulas:

The central pivot-point 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

Potential Breakout Gold Indicator - Pivot Support Resistance Indicator MetaTrader 4 Technical Indicator