Point and pivot levels are one of the most popular technical analysis indicators. They are used to identify turning points on the chart where the price is likely to change its direction of movement. The indicator is adapted for almost all popular trading terminals, thanks to which it is actively used by many traders. But it is especially popular with those who use the MT4 platform online. The Pivot Indicator For MT4 works on the basis of several methods at once, which makes it very effective.
Content:
- Construction methods and formulas for the Pivot Indicator For MT4.
- Where can I download Pivot Points in MetaTrader?
- How to install and configure the Pivot Indicator For MT4?
Pivot Indicator Plot Methods and Formulas for MT4.
The pivot point trading strategy is sometimes also called the pivot point method. It is one of the oldest in technical analysis and was developed back in the 30s of the 20th century, when nobody knew what scalping was. Even then, traders and financiers noted that the market and price charts are characterized by recurring peaks and troughs, with which price often interacts. By comparing the values of these prices, you can calculate where on the chart the price will change the direction of movement, which is a good help in making trading decisions.
One of the first to calculate pivot point values mathematically was Henry Chase, who became famous almost a hundred years ago for successfully combining his mathematical knowledge and stock market work. Analyzing the highs and lows of the closing price of the previous day, he managed to determine the Pivot level, with which the price reacted quite often in the future. As part of his calculations, he also calculated three levels of support (R) and resistance (S), which formed the basis of the technique used when using the Pivot Indicator For MT5. These levels are calculated using very simple formulas:
These levels are the most likely points, upon contact with which the price can change the direction of its movement. In modern practice, they are used in the same way as regular levels, where support or resistance is found on the chart. Pivot levels are displayed graphically as follows:
The value of these levels is recalculated every day. It is believed that the main rule of intraday trading using pivot levels is to open long positions if at the beginning of a trading session the price is above the main level. If it is lower, then sell transactions are preferable.
Where can I download Pivot Points in MetaTrader?
Dynamic Indicator For MT4 is a very common tool that can be found in many plugins of the main MetaTrader 4 software package. You can find such plugins on the websites of brokerage companies, specialized exchange forums and other online resources. The Pivot Points MT5 indicator can also be downloaded separately as a file, which contains a file for the terminal.
How to install and configure the Pivot Indicator For MT4?
If you downloaded a separate file that contains only the dynamic indicator for MT4, then in order to install it, you will need to transfer the file from the archive to the MT4 folder, that is, to “MQL4 / Indicators”. After that, you need to restart the terminal. The Pivot Points indicator must be added as a custom indicator in the corresponding list. In the future, it can be installed on any chart that matches the recommended time frame.
Pivot indicator configuration is subject to change. Depending on the setup, the user may have the opportunity to set the degree of importance of the displayed levels, the number of the last bars taken into account in the calculation, the minimum distance between the levels, the thickness of the lines, their number and some other parameters. The key is the maximum number of levels displayed, which is best left as the standard.
