Pivot Point MetaTrader 4 Indicator & Pivot Points Signals

Pivot points consist of a central pivot level surrounded by three support levels below it and three resistance levels above it. This indicator originally used by floor traders on equity & futures exchanges because they provided a quick way for those traders to get a general idea of how the market was heading during the course of day using a few calculations. However, over time these levels have also proved exceptionally useful in other markets as well.

One of the reasons that makes this indicator is now so popular is because they are considered a "leading" (or predictive) indicator rather than lagging. All that is required to calculate the levels for the upcoming (current) trading day is the previous day high, low, & close prices. These levels are calculated according to the following formulas:

The central pivot then can be used to calculate the support & resistance areas as follows:

Resistance 1

Resistance 2

Resistance 3

Support 1

Support 2

Support 3

Explanation

Pivot points can be used in many different ways. Here are a few of the most commonly methods for utilizing them.

FX Trend Direction:

Combined with other MetaTrader 4 Indicator techniques such as overbought/oversold MetaTrader 4 Indicators, volatility measurements, etc., the central pivot may be useful in determining the general trending direction of the market. Trades are only opened in the direction of the trend. Buy trade transactions occur only when the price is above the central point & sell trades occur only when the price is below the central point.

Trading Price Breakouts:

When trading price breakouts, a buy signal forms when the price breaks up through the central pivot point or one of the resistance levels (typically Resistance Level 1). A sell signal occurs when price breaks down through the central pivot or one of the support levels (typically Support Zone 1).

Trading Price Reversals:

When trading price reversals, a buy signal forms when market price moves towards a support level, gets very near to this point, touches this point, or moves only slightly through this point, & then reverses and moves back in the opposite direction. A sell signal forms when market price moves towards a resistance level, gets very near to this point, touches this point, or moves only slightly through this point, & then reverses and moves back in opposite direction.

Forex Stop Loss and FX Limit Profit Values Determined by Support/Resistance Levels Indicator:

The central pivot & its support & resistance levels might be potentially helpful in determining suitable stoploss &/or limit profit placements. For example, if trading a long breakout above the Resistance 1 level it might be reasonable to position a stop loss order just below the central point and one or more limit profit(s) orders at the Resistance 2 &/or Resistance 3 levels.

To download this Pivot points Indicator:

https://c.mql5.com/21/9/pro4x_pivot_lines.mq4

Once you download the indicator. Open it with the MQL4 Language Meta-Editor, Then Compile the indicator by pressing Compile Button and it'll be added to your MT4.

Note: Once you add it to your Meta Trader 4, the technical indicator has additional lines named MidPoints, to remove the extra lines open MQL4 Meta Editor(short-cut key board key - press F4), & change line 16 from:

Extern bool midpivot = true:

To

Extern bool midpivot = false:

Then Click Compile again, and the indicator will then appear as exactly portrayed on www.tradeforextrading.com website.