PIVOT POINTS ALL IN 1 INDICATOR MT4

The PivotPoints.All-In-One Indicator automatically plots trend reversal levels on the your MT4 terminal chart.

The Pivot Points.All-In-One Indicator combines all of the basic methods of constructing reversal levels. So you can easily use it in your trading system.

Support and resistance levels are one of the most popular tools in the forex market.

• They have gained popularity because they are very accurate in determining the reversal points (pivot points) of trends and tendencies.

By default, the MT4 terminal does not contain an indicator that would automatically build these levels.

What is a Pivot Points.All-In-One Indicator? 

• The Pivot Points indicator automatically plots levels on the MT4 terminal chart. By interacting with these levels, the price can change its direction of movement.

This indicator is unique in that it combines all basic and popular methods of constructing reversal levels. These are the following: Сlassical, Woodie, Fibonacci, Camarilla and Central Pivot Range (CPR).

• Please note that the Pivot Points indicator includes several methods of drawing pivot levels. But all of them are marked the same way on the MT4 terminal chart.

Only the formulas underlying the different approaches are different. So the exact location of the levels on the chart depends on that.

• Now we will briefly review each of the methods of drawing the pivot levels. We will also show the usefulness of each of them. That will help you to understand which of the approaches will be more useful for you.

But let’s mention it at once. Though the indicator shows the possible trend reversal points, it is not recommended to use it without being tied into the main trading system.

Methods for drawing reversal levels in the Pivot Points.All-In-One Indicator

Classical

• This approach is considered one of the most popular due to its simplicity in constructing pivot levels.

Only 3 parameters are used for calculating a pivot point. They are the high and the low of the previous trading session and the closing price. Since many forex traders prefer this method, the percentage of its interaction with the price is quite high.

Woodie

• In comparison to other methods of constructing pivot levels, this approach differs in increased attention to the closing price of the previous period.

Thus, the probability of a trend reversal near the pivot point is increased.

• Regardless of how long you hold open positions and for what purposes, this method of displaying reversal levels can be useful for you. After all, determining the most probable trend reversal point initially increases the chances of opening profitable positions.

Fibonacci

• This method of drawing pivot levels is inseparably connected with the classical Fibonacci theory. It is often used to identify the points of resumption in the global trend after a correction.

So if you are a mid-term trader and prefer to trade in the main trend, pivot points drawn using the Fibonacci method may help you.

• This method can help you to find potentially profitable entry points for resuming the main movement after a correction.

Camarilla

• A distinctive feature of constructing pivot points using this approach is the close placement of support and resistance levels to the reversal level.

This method is probably the most suitable for you if you are an active intraday trader or a scalper.

CPR

• Visually, this method is slightly different from the others.

It has only 3 lines – the main pivot level and upper and lower levels relative to the main one.

In practice, using this approach on the M30 timeframe and above helps in determining the main trend.

If the price is above the three built levels day after day, this indicates an uptrend.

If the trading day closes below all three levels, this indicates a weakening of the uptrend. This might indicate a change to a downtrend.

The method CPR can be useful for all traders. Determining the phase of the market (trend or flat) is one of the first and key steps in the analysis of the forex market.

Objectives that the Pivot Points.All-In-One Indicator solves

• So, after a brief review of the pivot levels, let’s see what objectives the Pivot Points indicator helps to achieve.

In practice, the indicator can help in determining the levels for placing stop-losses and take-profits. As well as in finding entry points into the market in the direction of the main trend.

Determining the points of trend resumption through Pivot Points.All-In-One Indicator

• We will use the Fibonacci levels to achieve this task.

As mentioned above, there is a difference between Fibonacci levels and other pivot levels. That is because this method is usually used for determining the correction of the main movement.

In the chart above, we can see the main trend being replaced by a correction.

• As the price approaches the support level S2, the downward movement slows down. This is indicated by the long candlesticks’ shadows and the further “trampling” of the price in one place.

It is believed that such signals should be practised after the confirmation of movement in the direction of the trend.

• Therefore, when the price begins to actively grow, you can try to buy at the market price. At the same time stop loss should be placed behind the support level S2.

Defining Stop Loss and Take Profit order placement levels through PivotPoints.All-In-One Indicator

• The Classical pivot levels are the most popular among the traders at the forex market. So let’s use this method to determine the Stop-loss and Take-Profit levels.
• The trading situation on the chart above indicates that the price movement range is between the R2 and S1 levels.
• The S1 level has already served as the price reversal point twice. Based on this, we can assume that when the price re-interacts with this level, it will again act as support.
• Therefore, when opening a potential Buy trade it is safer to place the Stop Loss behind the S1 level.  With the R2 level, the situation is more complicated.

Note that the price shows lower and lower highs, indicating the weakness of the buyers.

Of course, you can wait for the price to reverse near the R2 level and set the Take Profit there.

But in situations where the market is clearly signalling an unwillingness to grow, it is better to act carefully.

Therefore, it is safer to close half of the open positions manually near the R1 level. For the remaining trades, it is better to place Take Profit near the R2 level.