Potential Breakout Indicator

Pivot Support Resistance Indicator Meta Trader 4 is a set of indicators used to determine potential turning points or potential indices breakout points, also known as 'pivots' or pivot point. These Pivot Support Resistance Levels are calculated to determine points which the trend could change from a 'bullish' to "bearish market trend or from a 'bearish' to "bullish trend." Indices 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:

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

Stock Indices 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 traders may be doing the same thing.

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

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

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

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

The central pivot-point 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 stock traders to get a general idea of how the stock trading market will be moving during the course of the day by using a few simple calculations based on the previous stock price close - Previous Day Close Break-out Strategy and Market Open Strategies.

Pivot Support Resistance Indicator MT4 is considered as a leading 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-point 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

Pivot Support Resistance Indicator MT4 Indicator - Pivot Support Resistance Indicator MT4