Stock Indices Trend Technical Indicators

Pivot Points are used by traders to find support and resistance levels based on the previous day's stock index price action.

This indices technical indicator is a very useful tool that use the previous bars' highs, lows and closings to project support & resistance levels for future bars.

This indices technical indicator provides an idea of where key support and resistance should be. Place the pivot points on your stock indices charts and stock index price will bounce off one of these levels. These levels are used by traders to determine market tops, market bottoms or stock indices trend reversals.

• Daily pivots points are calculated from previous day's high, low, close

This indices technical indicator is shown below

Technical Analysis in Indices Trading

The central pivot itself is the primary level, which is used to determine the trend

The other support & resistance levels are also important in calculating areas that can generate significant market movements.

This indices technical indicator can be used in two ways

The first way is for determining overall Indices trend: if the pivot point is broken in an upward movement, then the stock indices market is bullish, and vice versa. However, pivot levels are short-term stock indices trend indicators, useful for only one day until they need to be recalculated.

The second method is to use these points to enter and exit the stock indices markets. This indices technical indicator is a useful tool that can be used to calculate the areas that are likely to cause stock index price movement.

These points should be used conjunction with other forms of technical analysis such as Moving averages, MACD & stochastic oscillator.

This indices technical indicator can be used in many different ways. Here are a few of the most common methods for utilizing them.

Stock Indices Trend Direction: Combined with other technical analysis techniques such as overbought/oversold oscillators, volatility measurements, the central point may be useful in determining the general trending direction of the market. Trades are only taken in the direction of the Stock Indices trend. Buy signal occurs only when the stock indices market is above the central pivot and sell signal occur only when the stock indices market is below the central pivot.

Indices Price Breakouts: A bullish signal occurs when the stock indices market breaks up through the central pivot or one of the resistances (typically Resistance 1). A bearish signal occurs when the stock indices market breaks down through the central point or one of the supports (typically Support 1).

Stock Indices Trend Reversals:

• A buy signal occurs when the price moves toward a support level, gets very close to it, touches it, or moves only slightly through it, & then reverses and moves back in opposite direction.

• A sell signal occurs when the price moves toward a resistance level, gets very close to it, touches it, or moves only slightly through it, & then reverses & moves back in opposite direction.

Stop Loss and/or Limit Profit Values Determined by Support/Resistance: This indices technical indicator may be potentially helpful in determining suitable stoploss &/or limit profit placements. For examples, if trading a long breakout above the Resistance 1 it might be reasonable to position a stoploss.

Combining with Moving Average Crossover System

A good indicator to combine and trade reversal stock indices signals is the moving average crossover which can be used to confirm the direction of a reversal stock index trading signal.

An investor can then open an order once these 2 indicators give a trading signal in same direction.

Moving Average Crossover Technique

Moving average crossover method that can be combined with this indicator to come up with a stock indices system for generating buy and sell signals.

To download Pivot points:

https://c.mql5.com/21/9/pro4x_pivot_lines.mq4

Once you download it open it with MQL4 Language Meta Editor, Then Compile the technical indicator by pressing Compile Button and it'll be added to your MT4.

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(shortcut keyboard key - press F4), & change line 16 from:

Extern bool midpivots = true:

To

Extern bool midpivots = false:

Then Press Compile again, and it will then appear as exactly illustrated on this website.