Pivot Points Stock Technical Analysis and Pivot Points Stocks Signals

This stocks indicator consists of a central pivot which is surrounded by Three resistance levels below & Three support levels above.

Initially these points were used by floor traders to analyze & trade the equities and futures stocks markets. This stocks technical indicator is considered to be leading rather than lagging.

Pivots provide a quick way for stock traders to analyze the general stocks trend of how the stocks market is going to be moving during the course of the 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 stocks prices are used

The stock trading day closes at 5:00PM EST this daily market closing time is when the technical 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 levels as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

Stock Technical Analysis and Generating Stocks Signals

This stocks indicator can be used in different ways to generate stock signals. Following techniques are the most common technical analysis:

Stocks Trend Identification Signals

The central pivot is used by traders to determine the general market stocks trend direction. Trades taken will only be in direction of the trend.

• Buy trading signal - price is above the central point
• Sell trading signal - price is below the central point

Stocks Price Breakout Signals

Stocks Price breakout trading signals are generated as follows

• Buy signal - is generated when the price breaks-out upwards through the central point.
• Sell signal - is generated when the price breaks-out downwards through the central point.

Stocks Price Break out

Stocks Price Reversal Stocks Signal

Stocks Price reversals are generated as follows

Buy Stock Signal- when price moves downward towards one of the support area, then touches the support or moves slightly through it then quickly reverses & moves upwards.

Sell Stock Signal- when the price moves upward towards one of the resistance level, then touches resistance or moves just slightly through it then quickly reverses & moves downwards.

Stocks Price Reversal Stocks Signal

Setting Stop-loss and Limit Profit Values

The central pivot and the other support & resistance zones are used by traders to determine suitable stop loss and limit profit levels.

Setting Stop-loss and 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, & the Support 1 can be set as a StopLoss Stocks Order Level for the trade.

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 the Compile Button Key & it will be added to your MetaTrader 4.

NB: Once you add it to your MT4, the technical indicator has additional lines named Mid-Points, 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 button again, & it will then appear as is exactly shown on this website.