PZ Pivot Points Indicator For MT4
The PZ Pivot Points Indicator For MT4 is a modified version of the standard Pivot Points indicator that allow a trader to choose the reference time frame for back testing.
Trading ideas with the PZ Pivot Points Indicator For MT4
This an indicator that is an upgraded version of the normal pivot point indicators that you are aware of. It still has all the functionalities of the normal pivot point levels indicators.
Pivot point indicators provide you with scientifically calculated or defined set of resistance and support lines inflecting above and below the main reference pivot point line. This is an excellent aspect of this indicator because we do not have to go through all the trouble of creating our own resistance and support lines as this is automatically done for you the moment you upload the indicator into your chart.
However, if you still need to draw your own support and resistance lines then do not feel hesitant - feel free to add in your support and resistance lines to supplement the ones that are automatically printed for you by the pivot point indicator.
It does not matter what trading strategy you may have - this tool is here to edify your trading experience. It is created in such a way that it will not conflict with your pre-existing trading methods and trading strategies.
PZ Pivot Points Indicator For MT4 Get The Setup Right
In the picture below we have uploaded the indicator into our chart on the fifteen-minute time frame. It does not differ from any other indicator because just like all other indicators, it comes with default settings. In this scenario, we have to make the necessary changes so that it ties up with our trading analysis in a way that is more useful.
Notice that the indicator is only able to show the R1 line or the resistance-one line. This should not be viewed as a malfunction - it is just that we need to make sure we edit the settings that best suit our trading views and analysis as per the time frame we would like to execute our trades on.
The reason for this super-wide spacing is because the indicator is drawn based-on the data-taken from the daily time frame - hence why the R1, R2, R2, P, S1, S2 and S3 lines are so wide apart. So what I am going to do now is configure the settings so that it can look or print the pivot point lines of a lower time frame. I will go with the four-hour time frame.
Just as a rule-of-thumb - most of the time it is beneficial to use the pivot point levels that are generated two or three time frames up from your trade-execution time frame. In this case, it is 15-minutes - so I will not use the 30-minute chart nor the one-hour chart - I shall go with the four-hour chart. If you were trading on the 5-minute chart you will use the pivot point levels from the 30-minute chart or the one-hour chart.
It is not a rule cast in stone. It is just that it serves as a productive guideline for establishing proper pivot point levels which the market adheres to relative to the chart you are trading on. So in the image below - I have brought these changes into place. So you are looking at the pivot point levels of the four-hour chart on the fifteen-minute time frame.
That is perfect. Now we can see all the lines in our trading chart - therefore we are able to identify resistance and support levels that will be reached in the near future. If the market is trading in a bullish market then we will look for buy opportunities and if the market is trading in a bearish market then we will look for sell opportunities.
PZ Pivot Points Indicator For MT4 - Buy Entries
The image below shows that the market is bullish. I have added in a MACD indicator which helps us quickly deduce what the market sentiment is.
The image clearly illustrates to us that the market is bullish because the MACD is above zero. Therefore, with the market trading in the region of the R levels above the middle line, we look for lines that act as support. These support levels will be our launchpad for opening our buy trades.
The ascendancy is with the buyers - the market has already painted a few bullish reversal candles and it has already shown bearish rejection around the R1 and R2 levels therefore you have the license to open buy positions.
If you were to go long in this regard - then it would be ideal for you to place your stop-loss around the S1 level. It is a safe region. But we need the market to support buying and to reject selling therefore opening a buy position around he R2 level is not a bad entry-level. This is because the market still offers enough support zones of which dominant selling could be met by opposing forces.