Pivot Only Indicator For MT4
Table Of Contents:
- Pivot Only Indicator For MT4
- Trading ideas with the Pivot Only Indicator For MT4
- Pivot Only Indicator For MT4 - Best strategies to use the indicator
- Pivot Only Indicator For MT4 - Buy Entries
- Pivot Only Indicator For MT4 - Sell Entries
- Pivot Only Indicator For MT4 - Conclusion
The Pivot Only Indicator For MT4 is a simple tool that displays the pivots based on H1, H4, daily and monthly candlestick pattern. Instead of dealing with too many pivotal lines this indicator simplifies the trading zone for the retail traders. To make a consistent profit with this indicator, you need to use it with the help of price action signals.
The Pivot Only Indicator For MT4 is a standardized tool used mainly to enhance your trading experience. Those who are in the trading industry for a long time know the complexities associated with the support and resistance level trading system. Usually, the inexperienced traders fail to draw the SR levels in an accurate manner. Either they end up taking the trades in the minor SR level or they focus on the wrong spot. After installing the Pivot Only indicator to the trading platform, you will notice the green and purple-colored line acting as resistance and support. Note that these lines are based on significant highs and lows of the market and the colored doesn’t really matter. If the price is above the line, it will act as support but if it below the line, it will act as resistance.
The difference between the purple and the green lines allows you to trade in the path of least resistance. For instance, if you sell at the purple line and see that the green line is more than 200 pips below, you do have a great chance to make a significant profit. So try to find trade signals when the distance between these two lines is greater. But this is not a cardinal rule since many experienced traders consider the gap between these two lines to determine a specific trading zone.
Trading ideas with the Pivot Only Indicator For MT4
The elite traders are able to earn a decent amount of money since they rely on a proven trading strategy. They know emotional actions will never let them earn money consistently. Before you start generating the trading ideas, you have to test your trading strategy. The strategy testing should be done in the demo environment so that you know the win rate of the system without having any losses. But those who are new to the trading profession might have some trouble while integrating the Pivot Only Indicator. But we have an easy solution for them. They can use a demo account and create their trading strategy in such a way so that the green and the purple line matches with your potential buying and selling zone.
Some rookies often ignore the role of the professional trading strategy. They rely on the complex method and even they use gut feelings to the trades. Things like emotions, aggressions, and lack of discipline can really hamper the trading ideas generated by your trading method. Though the Pivot Only Indicator is a very powerful tool still you should use this indicator in the proper way. Never consider this tool as the prime element to find the trade signals. The signals must be generated with simple techniques and then the Pivot Only Indicator data should be used to filter out the trades.
Pivot Only Indicator For MT4 - Best strategies to use the indicator
The professional traders know a lot about the market. In fact, they often use different kinds of trading strategies to execute the trades. But if you want to improve your accuracy, you need to use the Pivot Only Indicator with the right strategy. In general, Fibonacci, trend trading, chart pattern, and moving average trading system are used with this indicator. But those who rely on too many indicators should not use the Pivot Only Indicator since the data reading will discard most of the trade signals. Regarding the selection of the time frame, the traders don’t have any restrictions since the tool always emphasizes the higher time frame to draw the support and resistance line.
Being a new user of the Pivot Only Indicator, you will notice the green line matching with the major support level and the purple line will match with the resistance. At times, there will be a mismatch between the SR lines drawn by your trading system and the lines generated by this indicator. But if this becomes a regular phenomenon, either your trading system has a significant fault or else you are not using the right strategy. Now let’s illustrate the exact method by which long and short orders are executed in the market.
Pivot Only Indicator For MT4 - Buy Entries
Determining the major support zone in the chart is a very tough task. To take the long order, the retail traders should be taking the long trade at the major support level only. Find the bullish rejection in the price and then move to the Pivot Only Indicator. The rejection should take place at the green color line. But if your trading strategy spots the buying signal in another support level, you have to check the distance between the green line and the bullish trade signal zone. If the gap is too big, you should not take the trade.
A big gap between the bullish price action signal and the automated green support line drawn by the Pivot Only Indicator tells us the asset has a significant chance to fall. So, it is better to avoid the trade setup and look for better opportunities. Once you find the reliable long signal which matches with the green support line, you can assess the risk and take the long order. Note that you need to follow all the standard rules of money management since the Pivot Only Indicator will act as the filter tool only.
Pivot Only Indicator For MT4 - Sell Entries
Things will become a bit tricky in this segment. We have already told that the traders can consider the gap between the purple and green lines as a support or resistance zone. But in such case, the gap must not exceed 30 pips. If the gap is more than 30 pips, taking the short trade on such levels will require a wide stop loss. To execute the short, find the major resistance level in the chart. The price should either match with the purple line or it will stay below the purple and the green line. After finding a reliable sell signal in the potential trading zone, get your confirmation from the Pivot Only Indicator.
The confirmation is taken in a very simple way. The signal will be formed at the purple line or it will show a strong rejection of the resistance zone. But in both cases, you should keep the risk in each trade less than 3% of your account balance. But those who have strong trade management skills, can take 3% risk in the trade and expect to do better. However, the retail trader should be extremely careful about the news event. Unless they have experience in dealing with the news data, they should only trade in the most stable state of the market.
Pivot Only Indicator For MT4 - Conclusion
Professional traders know the role of money management. They never intend to break the rules in this profession since they know it will cause them big losses. While using the Pivot Only Indicator, the rookies often become overconfident. It’s very natural to get a boost in your confidence level since the indicator shows the major support and resistance level only. So, if you manage to take the trades at this level, you should not expect frequent losing trades. But never expect that you will be able to avoid losing trades in the market.
Losing trades are very common in the trading profession. If you want to succeed in this profession, you have to be aware of the fact, the Forex market is completely unpredictable. So, focus on finding the high risk to reward ratio trade setups so that one single winner can overcome a few losing trades. And make sure you are not taking any emotionally biased decision while using the green and purple line from the Pivot Only Indicator.