Indices Pivot Points Analysis & Pivot Point Trading Signals
Pivot Points Stock Indicator consists of a central indices pivot which is surrounded by 3 resistance areas above and Three support areas below the center pivot.
Pivot Points Stock Indicator is considered to be leading indicator.
Pivot Point Indicator provides a quick method for stock traders to analyze the general indices trend & analyze how the trading market is going to be moving during the day. A few calculations are used to plot the resistance and support levels for pivot point.
To calculate these support and resistance areas for the coming trading day - the previous day's
- high,
- low, and
- closing prices are used
The trading day closes at 5:00PM EST & this daily closing time is when the Pivot Points Stock Indicator is updated.
24-hour cycle for this Pivot Points Indicator are calculated using a complex formula - the central indices pivot is then used to calculate the support & resistance areas as follows:
Resistance Area 3
Resistance Area 2
Resistance Area 1
Indices Pivot Point Technical Analysis
Support Area 1
Support Area 2
Support Area 3
Pivot Points Indicator
Pivot Point Indicator can be used in different methods to generate trading signals. Following strategies are the most oftenly used technical analysis strategies:
Pivot Points Indicator Trend Identification
The central indices pivot point is used by stock traders to determine the trend direction. The stock trades opened by traders will only be in the market direction signal of the trend.
- Buy signal - bullish indices trend - stock price is above the central indices pivot point
- Sell indices signal - bearish indices trend - stock price is below the central indices pivot point
Pivot Points Indicator Price Break Out Signals
Price break out signals are generated as follows
- Buy signal is generated when the price breaks upwards through the central indices pivot point.
- Sell indices signal is generated when the price breaks-out downward through the central indices pivot point.
Pivot Points Indicator Price Break out
Pivot Point Indicator Price Reversal Trading Signal
Pivot Point Indicator Trading Price reversal stock signals are generated as follows
Buy trade signal - when stock price moves down toward one of the pivot support area, then touches the support zones or moves slightly through this support area then quickly reverses and moves upwards.
Sell indices trade signal - when stock price moves up toward one of the pivot point resistance level, then touches resistance area or moves slightly through this resistance area then quickly reverses & moves downwards.
Pivot Point Indicator Price Reversal Trading Signal
Placing Stoploss & Take Profit Order Areas
The central indices pivot-point and the other support levels & resistance levels of this pivot points indicator are used by stock traders to determine suitable stop loss setting levels & indices take profit areas.
Setting StopLoss Order Levels and Setting Take Profit Order Areas
If a buy order is placed above the central indices pivot point the Resistance Level 1 or Resistance Level 2 can be used to set the take profit level, and the Support Level 1 can be used to set the Stop Loss Order Area for the trade.
To download Trading Pivot Points MetaTrader 4 Indicator: https://c.mql5.com/21/9/pro4x_pivot_lines.mq4 Once you download the Pivot Points Stock Indicator - open the indicator with MQL4 Language Editor, Then Compile Pivot Points MetaTrader 4 Indicator by pressing the Compile Button and Pivot Points MetaTrader 4 Indicator will be added to your MetaTrader 4 software. NB: Once you add Pivot Points MT4 Indicator to your MetaTrader 4, the indicator has additional lines named Mid Points, to remove these additional Pivot Points MT4 Indicator lines open MQL4 Language Editor(shortcut keyboard key - press F4), and change line 16 from: extern bool midpivots = true: to extern bool midpivots = false: Then Press Compile Button again, and Pivot Points MetaTrader 4 Indicator will then appear as exactly shown on this learn indices web site.
