Potential Breakout Indicator - Pivot Support Resistance Indicator MT4 Indicator

Pivot Support Resistance Indicator MT4 is a set of indicators used to determine potential turning points or potential forex breakout points, also known as 'pivots' or pivot point. These Pivot Support Resistance Levels are calculated to determine points which the forex trend could change from 'bullish' to 'bearish or from 'bearish" to 'bullish.' Forex traders use these Pivot Support Resistance Levels as zones of support resistance.

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

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

Forex 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 forex traders might be doing the same thing.

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

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

A pivot-point & the pivot support resistance levels are often turning points for the direction of forex price movement.

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

• In a downwards forex trend, the pivot-point & the pivot support levels may represent a low for forex price level or a resistance to further forex price decline.

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

Pivot Support Resistance Indicator MT4 consist of a central pivot point level surrounded by three support levels below it and three resistance areas above it. Pivot Support Resistance Levels provide a quick method for traders to get a general idea of how the market will be moving during the course of the day by using a few simple calculations based on the previous forex price close - Previous Day Close Breakout Strategy and Market Open Trading Strategies.

Pivot Support Resistance Indicator MT4 is considered as a leading forex 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 prices. The 24-hour cycle pivot support resistance levels in this indicator are calculated according to the following formulas:

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

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

Potential Breakout Indicator - Pivot Support Resistance Indicator MT4 Indicator - Pivot Support Resistance Indicator MT4