Pivot Points XAUUSD Technical Analysis & Pivot Point Gold Signals
This xauusd indicator consists of a central pivot which is surrounded by 3 resistance levels below & 3 support levels above.
Initially these points were used by floor traders to analyze & trade the equities and futures xauusd markets. This xauusd indicator is considered to be leading rather than lagging.
Pivots provide a quick way for gold traders to analyze the general xauusd trend of how the xauusd market is going to be moving during the course of the trading day. A few simple calculations are used to plot the resistance and support levels.
To calculate these points for the coming trading day is the previous day's
- high,
- low, and
- close gold prices are used
The xauusd 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. Central pivot is then used to calculate the support & resistance areas as follows:
Resistance 3
Resistance 2
Resistance 1
Pivot Point
Support 1
Support 2
Support 3
XAUUSD Technical Analysis & How to Generate Trading Signals
This xauusd indicator can be used in different ways to generate trading signals. Following methods are the most common technical analysis:
XAUUSD Trend Identification Signals
The central pivot is used by traders to determine the general market xauusd trend direction. Trades taken will only be in the direction of the trend.
- Buy trading signal - price is above the center pivot point
- Sell trading signal - price is below the center pivot point
XAUUSD Price Break Out Signals
XAUUSD Price break out signals are generated as follows
- Buy signal - is generated when the price breaks-out upwards through the central point.
- Sell signal - is generated when price breaks-out down ward through the central point.
XAUUSD Price Break out
XAUUSD Price Reversal XAUUSD Signal
XAUUSD Price reversals are generated as follows
Buy Trading Signal- when price moves downward towards one of the support level, then touches support or moves slightly through it then quickly reverses & moves upwards.
Sell Gold Signal- when price moves upward towards one of the resistance area, then touches resistance or moves slightly through it then quickly reverses & moves downwards.
XAUUSD Price Reversal XAUUSD Signal
Setting Stoploss and Limit Profit Values
The central pivot & the other support & resistance zones are used by traders to determine suitable stop loss and limit profit levels.
Setting Stoploss & Limit Profit
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 a Stop Loss XAUUSD Order Level for the trade.
To download this Pivot points Indicator:
https://c.mql5.com/21/9/pro4x_pivot_lines.mq4
Once you download the indicator. open it with the MQL4 Language MetaEditor, Then Compile the technical indicator by pressing Compile Button and it'll be added to your MetaTrader 4.
Note: Once you add it to your MT4, the technical indicator has additional lines named MidPoints, to remove the additional lines open MQL4 Meta Editor(short cut key-board key - press F4), & change line 16 from:
Extern bool mid-pivots = true:
To
Extern bool mid-pivots = false:
Then Press Compile button again, and the indicator will then appear as depicted on this site.