Potential Breakout Indicator

Pivot Support Resistance Indicator MetaTrader 4 is a set of indicators used to determine potential turning points or potential oil breakout points, also known as 'pivots' or pivot point. These Pivot Support Resistance Levels are calculated to determine points which the oil trend could change from a 'bullish' to "bearish trend or from a 'bearish' to "bullish trend." Oil traders use these Pivot Support Resistance Zones as zones of support & resistance.

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

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

Crude Oil Trading 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 oil traders may be doing the same thing.

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

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

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

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

• In a downwards oil trend, the pivot point and the pivot support levels may represent a low for crude oil price level or a resistance to further crude oil price decline.

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

Pivot Support Resistance Indicator MetaTrader 4 consist of a central pivot point level surrounded by three support levels below it and three resistance levels above it. Pivot Support Resistance Levels provide a quick method for crude oil traders to get a general idea of how the crude oil market will be moving during the course of the day by using a few simple calculations based on the previous crude oil price close - Previous Day Close Breakout Strategy and Market Open Trading Strategies.

Pivot Support Resistance Indicator MetaTrader 4 is considered as a leading oil 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 oil prices. The 24-hour cycle pivot support resistance levels in this indicator are calculated according to the following formulas:

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

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

Pivot Support Resistance Indicator MetaTrader 4 Indicator - Pivot Support Resistance Indicator MT4