Pivots Indicator for Metatrader 4
The Pivots Indicator for MT4 (Metatrader 4)/NinjaTrader 7 is a technical tool used to calculate pivot points and analyze the market’s trend in different timeframes. It differs from other trend following indicators since they are static throughout the day. The indicator draws Daily, Weekly and Monthly pivots and the respective Supports and Resistances levels (S1, S2, S3, R1, R2, R3).
- Calculates and draws daily, weekly and monthly pivots.
- Plots daily, weekly and monthly pivots’ Supports/Resistances levels.
- Adaptable colors and visualization in different markets and timeframes.
- Option to show or hide any of the available pivot lines
How are Pivots Calculated?
Daily pivots are calculated by the average of the highest, the lowest and the closing price of the previous day. Weekly (Monthly) Pivots are the average of the previous week (month) high, low and closing prices.
Supports and Resistances are calculated by the width between pivot points and the high and low prices of the previous day/week/month.
How to use Pivots Indicator?
Traders can use this indicator alongside with other trend following indicators to predict possible reversions or breakouts. The indicator is very useful in predicting the direction of the trend taking into account its recent trading range average. If a market trades above the pivot point, it signals a bullish sentiment, while trading below the pivot point is a bearish signal.
Resistances or Supports can also be used to place stop loss orders or enter positions. For instance, a trader can put a stop loss under the first support (S1) of the daily pivot to get out of his position if the trend fails to reverse when reaching its first support level. On the other hand, if a trend successively breaks its resistance points, that marks a bullish sentiment and the trader can open a long position.
Use Sunday Data – Set to yes if want the indicator to bear into account Sunday prices.
Daily/Weekly/Monthly Pivot – Set to yes in order to show the respective pivot levels.
Daily/Weekly/Monthly S/R – Set to yes to show the respective Supports/Resistances levels.
Pivots/Supports/Resistances colors – Adaptable colors for the indicators to fit any need.
Different timeframes can also be selected in the Visualization tab.