Introduction to the All Pivot Points Indicator
Support and Resistance levels are interesting price points where price could either reverse or break out from. However, identifying such levels objectively can be very difficult for new traders.
The All Pivot Points Indicator can help traders objectively identify such levels by automatically plotting Support and Resistance levels based on a Pivot Point indicator.
What is the All Pivot Points Indicator?
The All Pivot Points indicator is exactly just what its name suggests. It is a Pivot Point indicator that can be modified to plot all the various types of Pivot Points. It can plot daily, weekly, and monthly Pivot Points. It can also compute the Pivot Point levels using various computation methods, such as the Classic Pivot Points, Camarilla, Fibonacci, and more.
How the All Pivot Points Indicator Works?
As mentioned earlier, the All Pivot Points indicator can use various computations to plot the different types of Pivot Points. It will also plot the Pivot Points based on the selected timeframe as basis.
For example, if the selected timeframe is the daily chart using a Classic Pivot Point, the All Pivot Points indicator would compute for the Daily Pivot Point (PP) based on the average of the high, low, and close of the previous day. The various Support (S1, S2, S3 and S4) and Resistance (R1, R2, R3 and R4) points will also be computed based on the main Pivot Point (PP). These lines will be displayed on the timeframes lower than the daily chart.
This indicator plots the lines based on a color coding.
- Pivot Point (PP): Light Gray
- Support 1 (S1): Red
- Support 2 (S2): Crimson
- Support 3 (S3): Fire Brick
- Support 4 (S4): Maroon
- Resistance 1 (R1): Lime
- Resistance 2 (R2): Lime Green
- Resistance 3 (R3): Medium Sea Green
- Resistance 4 (R4): Sea Green
Other important modifications would be the “Show Mode”, “Calculation Mode” and the “Time Frame”.
How to Use the All Pivot Points Indicator for MT4
Pivot Points based on a Pivot Point indicator can be effective support and resistance levels where price action can reverse or break out from.
The most popular method of trading based on Pivot Points is to trade reversals as price touches its levels. Traders can open a reversal trade based on reversal signals developing as price touches the said levels.
Buy Trade Setup
When to Enter?
Enter a buy order as soon as a bullish reversal candlestick forms after touching one of the Support levels of the All Pivot Points indicator. Set the stop loss below the bullish reversal candlestick pattern.
When to Exit?
Set the take profit target on the next Pivot Points level above the entry level and allow price to move towards the take profit target.
Sell Trade Setup
When to Enter?
Enter a sell order as soon as a bearish reversal candlestick forms after touching one of the Resistance levels of the All Pivot Points indicator. Set the stop loss above the bearish reversal candlestick pattern.
When to Exit?
Set the take profit target on the next Pivot Points level below the entry level and allow price to move towards the take profit target.
Conclusion
Pivot Points indicator are effective tools for identifying interesting points where price may reverse. However, it is not a standalone technical indicator. Traders should have an objective strategy in order to qualify reversal trade setups on these levels.
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