Pivot Points Technical Analysis & Pivot Points MT5 Indicator

This MT5 indicator consists of a central pivot which is surrounded by 3 resistance areas above and 3 support levels below.

Initially these points were used by floor traders to analyze and trade the equities & futures exchange markets. This MT5 technical indicator is considered to be leading rather than lagging.

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

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

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

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

The 24-hour cycle for this MT5 indicator are calculated using a complex formula. The central pivot is then used to calculate the support and resistance levels as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

FX Technical Analysis & Generating Signals

This MT5 indicator can be used in different ways to generate Forex signals. The following techniques are the most common technical analysis:

Forex Trend Identification Signals

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

• Buy signal - forex price is above the central point
• Sell signal - forex price is below the central point

Forex Price Break-out Signals

Forex Price break out trading signals are generated as follows

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

Forex Price Breakout

Forex Price Reversal Signal

Forex Price reversals are generated as follows

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

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

Forex Price Reversal Signal

Setting Stop loss & Limit Profit Values

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

Setting Stop loss & Limit Profit

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

To download Pivot points:

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

Once you download it open it with MQL4 Language Meta Editor, Then Compile the technical indicator by pressing the Compile Button and it will be added to your MT5.

NB: Once you add it to your MT5, the technical indicator has additional lines named Mid-Points, to remove the additional lines open MQL4 Meta Editor(shortcut keyboard key - press F4), & change line 16 from:

Extern bool midpivots = true:

To

Extern bool midpivots = false:

Then Press Compile again, & it will then appear as exactly illustrated on this site.