Indices Pivot Points Indices Expert Advisor Setup
Indices Pivot Points Indices Expert Advisor Setup - Setting Up Pivot Points Indices Expert Advisor - A Indices trader can come up with an Pivot Points Indices Expert Advisor based on the Pivot Points stock indices indicator explained below.
Indices Pivot Points Expert Advisor rules can be combined with other indices indicators to come up with other EA Indices Trading Robots that trade using rules based on two or more indicators combined to form a stock indexes trading system.
Pivot Points Indices Technical Analysis and Pivot Points Indices Trading Signals
This indicator consists of a central pivot which is surrounded by 3 resistance levels below and 3 support levels above.
Initially these points were used by floor traders to analyze and trade the equities and futures stock indices markets. This indicator is considered to be leading rather than lagging.
Pivots provide a quick way for stock indexes traders to analyze the general indices trend of how the stock indexes trading market is going to be moving during the course of the day. A few simple calculations are used to draw the resistance and support levels.
To calculate these points for the coming trading day is the previous day's
- low, and
- close indices prices are used
The stock indices trading day closes and this daily closing time is when the indicator is updated.
The 24-hour cycle for this indicator are calculated using a complex formula. The central pivot is then used to calculate the support and resistance levels as follows:
Indices Pivot Points Expert Advisor Setup
Indices Technical Analysis and Generating Indices Trading Signals
This indicator can be used in different ways to generate stock indexes trading signals. The following methods are the most common technical analysis:
Indices Trend Identification Signals
The central pivot is used by stock indexes traders to determine the general market indices trend direction. The trades taken will only be in the direction of the stock indexes trading market trend.
- Buy signal - stock indexes price is above the central point
- Sell signal - stock indexes price is below the central point
Indices Price Breakout Signals
Indices Price breakout signals are generated as follows
- Buy signal- is generated when the stock indexes price breaks upwards through the central point.
- Sell signal- is generated when the stock indexes price breaks downwards through the central point.
Indices Price Breakout - Indices Pivot Points Expert Advisor Setup
Indices Price Reversal Indices Trading Signal
Indices Price reversals are generated as follows
Buy signal- when stock indexes price moves down towards one of the support level, then touches the support or moves slightly through it then quickly reverses and moves upwards.
Sell signal- when stock indexes price moves up towards one of the resistance level, then touches the resistance or moves slightly through it then quickly reverses and moves downwards.
Indices Price Reversal Indices Trading Signal - Indices Pivot Points Expert Advisor Setup
Setting Stop loss and Limit Profit Values
The central pivot and the other support and resistance levels are used by stock indexes traders to determine suitable stop loss and limit profit levels.
Setting Stop loss and Limit Profit - Indices Pivot Points Expert Advisor Setup
If a buy is placed above the central point the Resistance 1 or Resistance 2 can be used to set the take profit level, and the Support 1 can be set as the Stop Loss Indices Trading Order Level for the trade.
To download Pivot points:
Once you download it open it with MQL4 Language Editor, Then Compile it by pressing the Compile Button and it will be added to your MetaTrader 4.
NB: Once you add it to your MetaTrader 4, the indicator has additional lines named Mid Points, to remove these additional lines open MQL4 Language Editor(shortcut keyboard key - press F4), and change line 16 from:
extern bool midpivots = true;
extern bool midpivots = false;
Then Press Compile again, and it will then appear as exactly shown on this website.