Pivot Points Expert Advisor Setup - Setting Up Pivot Points Expert Advisor

Pivot Points Expert Advisor Setup - Setting Up Pivot Points EA - A trader can come up with an Pivot Points Expert Advisor based on the Pivot Points indicator explained below.

Pivot Points Expert Advisor rules can be combined with other indicators to come up with other Expert Advisor Bots that trade using rules based on two or more indicators combined to form a system.

Pivot Points Analysis and Pivot Points Signals

This indicator consists of a central pivot which is surrounded by 3 resistance levels above and 3 support levels below.

Initially these points were used by floor traders to analyze and trade the equities and futures exchange markets. This indicator is considered to be leading rather than lagging.

Pivots provide a quick way for traders to analyze the general trend of how the market is going to be moving during the course of the trading day. A few simple calculations are used to plot the resistance and support levels.

To calculate these points for the coming day is the previous day's

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

The Forex day closes at 5:00PM EST this daily market closing time is when the indicator is updated.

The 24-hour cycle for this technical indicator are calculated using a complex formula. Central pivot is then used to calculate the support and resistance areas as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Points

Support 1

Support 2

Support 3

Pivot Points Expert Advisor Setup

Forex Analysis and Generating Signals

This indicator can be used in different ways to generate signals. Following methods are the most common technical analysis:

Trend Identification Signals

The central pivot is used by traders to determine the general market trend direction. Trades taken only will be in the direction of the market trend.

• Buy signal - price is above the center pivots point
• Sell signal - price is below center pivots point

Price Breakout Signals

Price breakout signals are generated as follows

• Buy signal - gets generated when price breaks-out up-ward through the central point.
• Sell signal - gets generated when the price breaks out downward through the central point.

Price Breakout - Pivot Points Expert Advisor Setup

Price Reversal Signal

Price reversals are generated as follows

Buy Signal- when price moves down toward one of the support level, then touches support or moves just slightly through it then quickly reverses and moves upward.

Sell Signal- when price moves up toward one of the resistance area, then touches the resistance or moves slightly through it then quickly reverses & moves downward.

Price Reversal Signal - Pivot Points EA Setup

Placing Stoploss & Limit Profit Values

The central pivot and the other support and resistance zones are used by traders to determine suitable stop loss and limit profit levels.

Placing Stoploss and Limit Profit - Pivot Points Expert Advisor Setup

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

To download Pivot points technical 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 & it'll be added to your MT4.

Note: Once you add it to your MetaTrader 4, the indicator has additional lines named MidPoints, to remove the extra lines open MQ4 MetaEditor(short cut key-board key - tap F4), & change line 16 from:

Extern bool mid-pivots = true:

To

Extern bool mid-pivots = false:

Then Press Compile Button again, and it will then appear as shown on this site.