Pivot Point Indicator Meta Trader 4 is an indicator that is most objective and technical indicator. It works automatically by adding itself to chart. It helps to identify areas of support and resistance using indicator platform MT4 and MT5.
Pivot point indicator for Meta Trader 4
What are Pivot Points?
Pivot Points is a price level that is used to determine price movements in market. Pivot simply means change which means price will change its direction. Pivot point use two strategies support and resistance /breakout. Pivot must be calculated and added to chart then judged.
Calculation of Pivot Points.
Indicators are used to calculate Pivot Point.
Calculation is (High + Low + Close) / 3 = PP (pivot point)
Where: (2 x PP) – Low = First resistance level
(2 x PP) – High = First support level
Where: PP + (High – Low) = second resistance level
PP – (High – Low) = second support level
You can use many indicator to calculate pivot point and one of those is Free Pivot point Calculator.
Types of Pivot point:
Standard pivot points: This type of pivot point (denoted as P) is called base pivot point as it uses the basic arithmetic formula for calculating means of high(H) , low(L) and close(C) from the given previous period. For example: P=(H+L+C)/3
Fibonacci pivot points: This type of pivot points also uses the same formula as standard pivot point but also design conflicts and backing intensities certain distance away from the point P. the backing and conflict intensities are calculated by adding or subtracting Multiple D from P where D is the difference between the lower and the higher levels.
DeMark pivot points: DeMark pivot point also uses the formula to calculate the base pivot point but it calculates the comparison between how open the higher level than how close the lower level is.For this purpose a variable (x) is used.
Uses of Pivot Point Indicator:
- It is use to get general direction of trend.
- Market price above the base suggest the upward trend and market price below the base suggest downward trend in Pivot point.
- Traders desire to use more pivot point as they assume that most often the price is supposed to be converse at one of the pivot point when there is some risk.
Trading with pivot point Indicator.
Most popularly pivot point indicator is used by trade to predict support and resistance level. It is well suited for intraday trader.
There are higher chances of reverse market move when trade hit resistance and predict market price move and reversal. PPI is used to make day to day trading and can be small in nature. Pivot point Indicator is easy to use and install in market. It is sum of multiple market interactions.
At the same time as pivot points are mathematical and technical calculations using the past day price data, you should still use other strategies along to increase your chance of making more profits in market trades. These systems include using other technical analysis methods, candlestick patterns or other indicators such as MI.
• Pivot Point Indicator Meta Trader 4 is used to indicate strength trend in the trade.
• Its calculations are based on moving average price.
• It is used to differentiate between trending and non-trending conditions.
• It helps to identify profitable trade.
• From the rise and fall of lines in the Pivot Point Indicator Meta Trader 4 graph, the traders sense the price climax.
HOW TO INSTALL Pivot Point Indicator Meta Trader 4:
• First step: – Download the Pivot Point Indicator for Meta Trader 4 platform.
• Second step: -Copy Pivot Point Indicator for Meta Trader 4. mql4 to your Meta trader Directory/experts/indicators/
• Start or restart your Meta trader 4 Client.
• Select Chart and Timeframe where you want to test your MT4 indicators.
• Search “Custom Indicators” in your Navigator mostly left in your Meta trader 4 Client.
• Right-click on Pivot Point Indicator for Meta Trader 4.mq4.
• Attach to a Chart
• Modify settings or press ok
• In the end, the Pivot Point Indicator for Meta Trader 4.mq4 is available on your Chart.
How to remove Pivot Point Indicator :
• First step: Select the Chart where is the Indicator running in your Meta Trader 4.
• Second Step: Right-click into the chart.
• Third step: Indicators list.
• At the last: Select the indicator and delete it.
These are simple and easy steps that you need to follow before starting trade because it gives you buy and sell zone indicator with almost 90% precision.
Ahead you are going to begin in real account trading you need to trade at the minimum for one month as a demo in any MT4 or MT5 brokers. It awards you more potential for getting quality payback in long or short term trading across also moving average.