Pivot Points MT4 Indicator | Advanced Forex Strategies
This strategy is one effective trading approach because it automatically shows you where you buy and where to sell. And with that, it instills a certain sense of discipline because if you follow the system rules, you know you have to wait. So just to be clear, the Pivot Points MT4 Indicator will clearly show you where the support, resistance lines are and it will also auto calculated the Pivot Point for you. This is the Pivot Points MT4 Indicator setting screen.
Now with this MT4 Indicator, you will have automatic support and resistance lines identified. And from here, you trading view should look like this.
So now, with this Indicator loaded, how do we trade this effectively?
Here’s are some guidance on system rules.
Timeframe: Daily Time Frame is Best. H4 is acceptable but still not preferred.
Higher timeframes have proven to be more reliable that lower time frames as the fluctuation on the lower time frames have no respect for Support and Resistance line.
Adding in another Indicator for Confirmation:
In this example, we have added in Stochastic as an example. You want to buy at support when stochastic is moving out from oversold levels like the chart below.
Another way to get confirmation is to use candles sticks like Pin Bar or Engulfing patterns. At support or resistance, when you see a Pin Bar appearing, it’s a really good sign to take the trade.
You get the point. On its own, the Pivot Points MT4 Indicator just draw the lines for you and show you where the buy and sell zones are. You will need to add another Indicator or trigger to confirm your entry. Please do not think that each time the price is near a support or resistance line, you must either buy or sell. NO! You don’t have to take every trade that comes by.
What you want is to combine the Pivot Points MT4 Indicator with your own preferred trigger. I have show you examples of Stochastic as a trigger or perhaps the use of Pin Bars as triggers. It’s now up to you on what you want to use as triggers. You can also choose to combine our Price Action Scanner with Pivot Points MT4 Indicator.
So here are the steps to trading the Pivot Point MT4 Indicator.
- Wait for the price to be near support and resistance.
- Wait for trigger.
– example if using Stochastic and if stochastic is oversold level, then you should consider going long.
– if Stochastic is at overbought level and pointing down, then you should consider selling.
– if using Price Action like the Pin Bar, then with a bullish pin bar, you might want to consider a long position.
- Set your Take Profit Target and Set your stops.
Special Note: Daily Time frames are very reliable. Lower time frames will be highly inconsistent.
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