# Potential Breakout Indices Indicator

Pivot Support Resistance Indicator MetaTrader 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 indices trend could change from "**bullish**" to "**bearish** or from "**bearish**" to "**bullish**." Indices 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 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 indices traders may be doing the same thing.

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

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

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

- In a downward indices trend, the pivot point and the pivot support levels may represent a low for stock indices price level or a resistance to further stock indices price decline.

The central pivot point can then be used to calculate the support resistance levels 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 stock indices traders to get a general idea of how the stock indices trading market will be moving during the course of the day by using a few simple calculations based on the previous stock indices price close - Previous Day Close Breakout Strategy and Market Open Trading Strategies.

Pivot Support Resistance Indicator MetaTrader 4 is considered as a leading indices 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 indices 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 MetaTrader 4 Stock Indices Indicator - Pivot Support Resistance Indicator MetaTrader 4**