Pivot point Indicator For MT4
Table Of Contents:
- Pivot point Indicator For MT4
- Trading ideas with the Pivot point Indicator For MT4
- Pivot point Indicator For MT4 - Buy Entries
- Pivot point Indicator For MT4 - Sell Entries
- Pivot point Indicator For MT4 - Conclusion
The Pivot point Indicator For MT4 draws the critical pivot points and it helps the fulltime day traders to understand the tone of the market for the specific trading session. If the price trades above the pivot point, look for buying opportunity only. On the contrary, find short trade setups when the price trades below the pivot points. To get the best results to use it in the 4H time frame.
The Pivot point Indicator For MT4 is a dynamic tool to find the perfect trading spots. People who have sheer experience in the investment industry, know the importance of pivot levels. Pivot levels are nothing but the most important support and resistance points that show us the exact buying and selling spot.
Most of the investors execute their trades at the important pivot levels based on the high and lows. With the help of the horizontal line tools, the retail traders mark the important point. Some of the investors use the manual calculation mode to locate the important pivot levels. But all these factors are hazardous and require strong skills. To solve this problem, the developers have come up with the Pivot Point indicator.
This is not your traditional indicator that uses an arithmetic formula to find the pivot levels. It analyzes the important candlestick patterns and uses a smart algorithm to draw the horizontal bars for the retail traders. The horizontal bars are formed in two colors. In general, the red color bars act as resistance, and the green bar act as support. Those who have a robust trading edge should see these colored bars right at their trade formation place.
Trading ideas with the Pivot point Indicator For MT4
Very few traders actually give priority to the importance of the trading method. Usually, the traders look for complicated trade setups as they think it is the only way to earn more. But the complex trading system has its own drawback. For instance, you have to analyze complicated price factors which becomes tough during the volatility.
Moreover, due to the excessive processing of the information, traders often get lost and fail to analyze the important market metrics in a systematic manner. So, always try to create a simple trading edge so that you can do perfectly well without having much trouble. Once you have picked the trading method, slowly learn the use of the pivot point indicator. After installing the indicator in the chart, you should see two colored lines at the important zone. T
hough initial biased for the green horizontal line is bullish it can also act as a resistance level. To make the process simple, analyze the position of the candle, and then determine the function of the red and green horizontal lines. When the price is higher than the horizontal lines, they will act as support and when the price is lower, these will be acting as resistance.
Pivot point Indicator For MT4 - Buy Entries
Some of you might not know why elite traders are able to earn money. The secrets lie within their patience. They utilize their trading method in a super effective method and look for a reliable support zone. They use the systematic order to find the bullish trade setups. Once you have such skills, you will be able to execute long trades without having much trouble.
But to improve your performance, you have to rely on the pivot point indicator. The place where you have spotted the buying signal should coincide with the green color line. The green color line will be automatically drawn by the pivot point indicator. As you locate the green color line in the chart, you should be setting up the SL and take the profit level.
If you manage to do that in the correct order, chances are high this indicator will make you a successful trader. Always try to take the trades in a strategic way so that you can earn enough money without having many problems. Be precise with your risk exposure level and try not to take high risks in the investment industry.
Pivot point Indicator For MT4 - Sell Entries
In this segment, we will teach you two methods to use the Pivot point indicator. Most of the time, the traders fail to do the proper market analysis. They end up taking the trades at the minor support and resistance. Some traders consider the minor levels are waste of time. But these levels can be very effective once you learn the core function.
Let’s say, you have noted a breach in the weak support zone. You should see the green and the red line is closely drawn in the chart by the Pivot Point indicator. Right after the break of the support, the price should retrace a bit and it should touch the red line of the pivot point indicator. The red line will match with the weak support level which has been recently broken.
Find the desired SL and TP zone so that you can be sure that the trades are not taken by ignoring the rules of risk to reward ratio. Regarding the risk factor in each trade, it should never exceed 2% of your balance. If it does, you won’t be able to cover up the losses by using the pivot point indicator as a filter tool.
Pivot point Indicator For MT4 - Conclusion
The success of the trading system greatly depends on the function of the filter. The pivot point indicator is not only a trade filter tool but it can allow you to find the exact location where you can take a long or short trade. Since the indicator uses the reliable candlestick pattern, you can easily execute the trades without having major trouble.
However, you need to take care of the high impact news. Ignoring the high impact news can be very hectic as you will not know the process to deal with the volatile state of the market. Get a paper trading account and study the price movement right after the news. See how the price reacts to different kinds of news. Once you become good at news analysis, you can improve your trade executions by simply using the pivot point indicator.
Some of the advanced traders often set the pending orders at the pivot level but this should be done with less than 2% risk. When the limit order is used to open any trade, it is better to trade with 1% risk. Regarding the losing trades, never expect to have winners all the time. Every system has its own drawback and the traders can’t do anything other than accepting the losses. But intellectual traders can deal with the losses just by using a simple risk to reward ratio formula.