The Pivot Point with adjustable closing time Indicator For MT4
Table Of Contents:
- The Pivot Point with adjustable closing time Indicator For MT4
- What are pivot points and how to use them
- Settings of the Pivot Point with adjustable closing time Indicator For MT4
- Trade examples with the Pivot Point with adjustable closing time Indicator For MT4
The Pivot Point with adjustable closing time Indicator For MT4 is a good pivot point indicator. Pivot points are used by many professional and advanced traders all around the planet.
These points are often respected by the price movement and thus are mostly used to enter trades after a bounce off of them. They are calculated based on previous candles. Most commonly traders use the daily, weekly and/or monthly pivot points while trading.
At the start of this short article you will learn a bit about the basics of pivot point trading. Afterwards I will quickly explain the settings of the Pivot Point with adjustable closing time Indicator For MT4. In the end I will show you a few trade examples with this indicator.
What are pivot points and how to use them
Resistance and support zones are arguably one of the most used tool in technical analysis and while trading. As the name suggests, these zones represent areas that are harder for the price movement to break through. This leads to one of two things: Either price breaks the level or it bounces from this level and turns around.
Each of these possibilities usually creates a strong move in its respective direction. This is because of the amount of orders that are typically placed around these areas. The stop of the traders that are on the wrong side of the breakout/bounce level is likely getting hit, which can be seen as another order in the other direction. Following this suddenly all orders are now in the identical direction and pushing the price strongly.
Pivot points represent very heavy support and resistance areas and thus can create large movements. The key to success is to be on the right side of this movement. The daily pivot points are calculated based on the price data of the day before. Typically three resistance pivot points and three support pivot points are drawn per day and all can be traded either as breakout trades or bounce trades.
Settings of the Pivot Point with adjustable closing time Indicator For MT4
The Pivot Point with adjustable closing time Indicator For MT4 has a lot of settings and everything can be personalized to best fit your chart and your likings. Let’s start with the first setting, because this separates the indicator from a lot of other pivot point indicators. Here you can define the hour that should be used for the pivot point calculation. The indicator uses the price at that time as the closing price of the day and creates the pivot points for the next day based on this closing price. This can for example be used to set up the indicator to use the New York closing price as basis for its calculations.
With the next four columns you can decide which pivot points should be displayed on your charts. The most common ones are the daily pivot points, but the weekly and monthly points offer very good strength as well, but price reaches them less frequently because they are further away. Decide for yourself which ones you like the most or use them all at the same time if you want.
The rest of the settings is used to customize the appearance of the different pivot point lines. You can change everything that you can imagine. Its possible to use different colors for each line as well as different line styles.
Trade examples with the Pivot Point with adjustable closing time Indicator For MT4
Above you can see the Pivot Point with adjustable closing time Indicator For MT4 in action. I set it up to show both the daily and the weekly pivot points. Resulting of me being a very safe trader I only trade the setups with the greatest chance of winning. That’s why I choose to only enter trades at confluence points where both a weekly and a daily pivot point are roughly at the same spot. This adds even more strength to these levels and makes them more likely to hold and push price away from them.
Using this strategy and combining it with a little bit of price action can help you improving as a trader. You can be even more safe if you also add the monthly pivot points to this and only trade at levels where all three points are aligned. This does however severely limit the trade possibilities.
If you are a riskier trader, you can also use only the daily pivot points and trade only based on them. As you can see price respects these levels multiple times. With this concept you will have a lot more trade opportunities, but you will probably also have a few more losing trades. Regardless of which concept you use, but especially with the later one, focus on your money management and make sure it’s on point!