Pivot 2 Indicator For MT4
Table Of Contents:
- Pivot 2 Indicator For MT4
- Trading ideas with the Pivot 2 Indicator For MT4
- Pivot 2 Indicator For MT4 - Best strategies to use this indicator
- Pivot 2 Indicator For MT4 - Buy Entries
- Pivot 2 Indicator For MT4 - Sell Entries
- Pivot 2 Indicator For MT4 - Conclusion
The Pivot 2 Indicator For MT4 acts like modified pivot tools that allow the traders to find the critical support and resistance level in the price charts. Instead of making things complicated it displays the critical trading zone in a very simple way. To get the best result from this indicator, you need to use it higher period.
The Pivot 2 Indicator For MT4 is a classic tool. Thousands of traders are using this indicator just to determine that they are taking the trades at the perfect SR level. Sadly, most of the traders have not experienced the full potential of the Pivot-2 indicator. This indicator depends on market momentum, critical highs and lows, and a special algorithm to draw the SR line segments. The red dotted lines act as the supportive zone and the green dotted lines act as the resistance. Skilled traders match these dotted lines with the manually drawn support and resistance level to take their trades.
The novice traders often become confused by seeing numerous line segments. But to make a profit, you don’t have to deal with all these line segments. Just focus on the most recent colored dots and deploy your trading strategy to find the potential trade signals. It might take a while to sync the Pivot-2 indicator with your existing system but the process is really easy. After reading this guide, you can expect to exploit the full functionalities of the Pivot-2 indicator. It’s true the Pivot-2 plots the critical trading levels but to make a profit you have to consider them as a reinforcement tool. The main trade signals must be identified with the help of your existing trading strategy.
Trading ideas with the Pivot 2 Indicator For MT4
The support and resistance level drawn by Pivot 2 is not the major or minor support level. Rather it acts as the reference line to find the quality of the trade signals. That’s why we have so many dotted colored lines in the chart. But when these lines are synchronized with an existing trading strategy, you will feel more confident with the trade setups. These lines can also be used to determine the breakout of the minor support and resistance level. Such an approach is very effective when you are suffering to find the confirmation signal via your trading strategy.
Some of the retail traders generate their trading signals with great ease but they suffer to get the confirmations. This where the professional traders excel in using the Pivot 2 indicator. They take the long trade right at the break of the sky blue lines and take their short when the red dots are broken. But in this case, they consider the nearest dotted lines as the confirmation barrier. But no matter how you use the dotted line segment, you must find the initial trade signals by using the demo account.
Pivot 2 Indicator For MT4 - Best strategies to use this indicator
Selecting a suitable strategy for a certain indicator is a very tough task. Even the professionals might mess things up during the integration of a new indicator to their existing system. In order to save yourself from such hassles, we are going to highlight some of the amazing strategies which can flawlessly fit with the Pivot 2 indicator. First of all, we will recommend the retail traders to use it with the price action trading strategy. Being a candlestick pattern user, the trade execution will be effortless since you can easily get a confirmation by using the small colored line segments.
Mastering price action trading strategy is not an easy task. Many retail traders prefer a different trading strategy. In such a case, we will recommend using trend trading, channel trading, and simple range trading strategies with this Pivot 2 indicator. While using such a trading method, try to get the trade signals in a higher time frame. Taking the trade signals from the higher time frame has an immense benefit as the retail traders won’t have to deal with too many false signals. To make things easier, let's give us the example by which you can analyze the long and short trade setups with the help of the Pivot 2 indicator.
Pivot 2 Indicator For MT4 - Buy Entries
Buying at critical support is quite a challenging task. Most people fail since they find the support level in the wrong way. Before you deploy the Pivot 2 indicator, you must be certain that your trading strategy is capable of finding a major support level in the chart. A strong support level should have a cluster of candles right below it. If not, it should be significantly low in the market. Look for the bullish price action signal or a strong rejection. Once the long trade setup has been identified, it’s time to get confirmation from Pivot 2. If the support level matches with the red line dot, you can expect to earn money from that trade.
Those who are looking to take the trade without the help of the price action signal should use both red and sky blue dots. First of all, the support level must merge with the red dots. After the bullish trade setup has been identified, wait for the price to break price above the sky blue dot. Once you have a candle closing above the sky blue dot, execute the long trade.
Pivot 2 Indicator For MT4 - Sell Entries
In this segment, we will exploit the full functionalities of the Pivot 2 indicator. Though you know most of the critical functions to use the Pivot 2 indicator there is something more to this tool. Look for the sell signal at the major resistance level. Analyze the trading hours so that you don’t end up taking the trades right before the major news. Once the trade signals are identified properly, you should be waiting for the break of the red lines. The process is pretty similar to the long trade setup. But in this segment, we will be using the other red dots to determine the take profit level.
Once you have taken the short trade, skip one red line segment and set the take profit level to the third red dot line segment. It will allow you to get a better risk to reward ratio. Some experts also use the sky blue dot to set the SL price while taking their short. There are no fixed rules for using these dotted line segments so you do have the liberty to sync the Pivot 2 based on your trading preference. While doing so, make sure you not provoking yourself to find a shortcut method to earn more money.
Pivot 2 Indicator For MT4 - Conclusion
Looking for the short cut is one of the key reasons for which retail traders are losing money. Even after knowing advanced risk management technique, traders often fails to safeguard the capital. Emotions and negligence are some of the key factors which contribute to big losses. After using the Pivot 2 indicator for a while the novice and the intermediate traders often become overconfident with their approach and they start ignoring the minor details. Though the impact is not seen most of the time when the market becomes volatile such small errors magnify their losses.
To succeed in the investor business, you have to find a strategic method to deal with the losses. Always use the small dotted line segment as the confirmation tool. Instead of relying on the Sky blue or the red line segment, use them both to filter the high-quality signals. It is not a tough task to analyze bot dots at the same time. Consider the sky blue and the red dot line segment as the resistance and support levels of the rectangle chart pattern. Utilize the breakout of these levels and execute the trades with low risk. And be aware of the significant news event as it can cause a false spike which can wipe your trading account.