PivotPoints_MTF Indicator For MT4
Table Of Contents:
- PivotPoints_MTF Indicator For MT4
- Trading ideas with the PivotPoints_MTF Indicator For MT4
- PivotPoints_MTF Indicator For MT4 - Buy Entries
- PivotPoints_MTF Indicator For MT4 - Sell Entries
- PivotPoints_MTF Indicator For MT4 - Conclusion
The PivotPoints_MTF Indicator For MT4 shows the major pivot points in the price charts. All the pivot points are automatically calculated and the traders executed the trades with the help of the price action signals. However, you need to use this tool in the higher time frame or else you will be trading the minor support and resistance level.
Partially Automated Trading Besides Your Day Job
Alerts In Real-Time When Divergences Occur
The PivotPoints_MTF Indicator For MT4 solves the key problem related to the identification of the SR levels. SR levels are nothing but the support and resistance level for a specific trading instrument. The majority of the amateurs struggles to determine the support and resistance and they end up using complex EAs.
Eventually, they become frustrated and loses money most of the time. To solve this critical problem, investors are now using the PivotPoints_MTF. This indicator analyzes the highs and lows, uses a standard mathematical algorithm to find the mid points. The midpoints are more like the trend determination tool.
After installing this indicator, you see a purple color line and this line is known as the mid-point. If the candlesticks are above the purple color line, the price is in the uptrend. On the contrary, when the price is below the purple color line, the trend is down. The resistance points are marked with red-colored lines and the blue colored lines stand for the support zone. Note that the indicator emphasizes on the H4, daily, weekly, and monthly time frame data. But it doesn’t mean you won’t be able to take the trades in the lower time frame. But to get precise data, you should be analyzing the time frame from the 1 hour and above only.
Trading ideas with the PivotPoints_MTF Indicator For MT4
Knowing about the critical support and resistance level is more like doing 50% of the work at trading. Sadly, the novice traders think that the PivotPoints_MTF Indicator will do all the work. This is just a simple indicator that analyzes important data to draw the important trading zone.
But to get better at trading, you have to know the proper way to find a trade setup. For that, you need to undergo vigorous training. Use the demo trading account from the start and try to boost your trading skills by using different techniques. It might take a while to get used to a systematic approach to trading but without creating a balanced trading strategy, it is impossible to develop your skills as a trader.
Once you have the trading system ready, you can depend on the PivotPoints_MTF Indicator to filter the quality trades. If you manage to use this indicator in the proper way, you can expect to win more than 10% of the trades. This means, a trading system that is capable of securing 60% winning trade, will generate more than 70% profitable trade. Let’s see how we can use the colored pivot levels of this PivotPoints_MTF Indicator.
PivotPoints_MTF Indicator For MT4 - Buy Entries
Before you move to the indicator segment, you have to deploy your trading system. By using the sequential steps, find the potential buying zone. The price needs to test the buying zone and show a rejection pattern. The rejection pattern in the price usually creates a bullish price action signal.
But some of the retail traders don’t have any idea about the price action trading strategy. For them, we have devised a simple method. They need to look for a candle that has a higher closing above the support level. Once you get the buying signal, you have to get the confirmation from the PivotPoints_MTF Indicator. The price support level should match with the blue lines.
If you carefully analyze the blue lines, you will see that these lines are well respected. When the trend is strong, you can consider the red lines as support levels. But in that case, you must ignore the first red lines since it will be considered as the prime resistance. The break of the first red line will give you an opportunity to take the trades in a retracement.
PivotPoints_MTF Indicator For MT4 - Sell Entries
Some of you might be confused about the use of the red lines as a support level. Read this paragraph minutely to get a clear idea. When a red line is broken, it becomes a support zone. On the contrary, when a blue line is broken and the price falls below the blue line, it becomes a resistance zone.
So, for the short trade, you have to look for the bearish signal at the broken blue line or at the untouched red lines. But you can’t look for the trade setups at these lines without having any trading edge. By using your existing trading module, you have to pinpoint the potential selling zone.
And the selling zone must match with the resistance or the newly formed resistance line drawn by the PivotPoints_MTF Indicator. Since this indicator focus on the technical variables, knowledge about the candlestick pattern can significantly improve your win rate. You can learn about the price action candlestick pattern by using the demo account. But if you still intend to trade without using the price action signal, try to trade with 1% risk only.
PivotPoints_MTF Indicator For MT4 - Conclusion
A smart period can easily improve his trading system by using reliable indicators and trading techniques. It’s true, the use of the PivotPoints_MTF Indicator has a significant impact on the trading system but it needs to be sync perfectly with the system. Failing to sync the indicator with the existing trading method can downgrade the performance of a well-balanced trading method.
To avoid unnecessary problems, you can trade in the hourly and higher time frame only. Try not to use this indicator with a system that heavily relies on other technical indicators. Traders who have strong knowledge of the PA trading method can gain significant benefits from this tool. But note that these pivot points often get breached during the major news.
If you consider the levels in the PivotPoints_MTF Indicator as a robust zone, you will in great trouble. Even the best trade setups can fail and you can’t do anything. The only way by which you can survive in the Forex business is by using logical techniques. Assess the risk to reward ratio in a systematic manner and look for the high RR ratio trades. If you feel confused about a certain trade, no need to open a new trade. Wait in the sideline till you get a favorable trading opportunity.
