Pivot Points Technical Analysis Signals

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

Pivot Points Technical Indicator is considered to be leading technical indicator.

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

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

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

The Forex trading day closes at 5:00PM EST & this daily closing time is when Pivot Points Indicator is updated.

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

Resistance Level 3

Resistance Level 2

Resistance Level 1

Forex Trading Pivot Point Technical Analysis

Support Level 1

Support Level 2

Support Level 3

Pivot Points Indicator - Technical Analysis

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

Pivot Points Indicator Trend Identification

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

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

Pivot Points Indicator Price Break-out Signals

Forex price break-out signals are generated as follows

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

Pivot Points Indicator Price Break out

Pivot Points Indicator Price Reversal Signal

Pivot Points Indicator Trading Price reversal signals are generated as follows

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

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

Pivot Points Indicator Price Reversal Signal

Setting Stoploss & Take Profit Levels

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

Setting Forex Stop Loss Levels and Setting Take Profit Levels

If a buy order is placed above the central forex 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 Level for the forex trade.

To download Forex Trading 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 platform. 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 again, and Pivot Points MT4 Indicator will then appear as exactly shown on this learn forex web site.