10 Pivot Point Trading Strategy for MT4 (PDF Guide)

March 27, 2024 Trading system

Introducing the pivot point trading strategy a reliable and effective method for identifying key turning points in any market. So why wait? Learn how to use this game-changing strategy today and take your trading skills to the next level!

How to use pivot point in the intraday strategy?

Pivot point trading is a strategy that is used by many traders in the stock, forex, and futures markets. The key to success with this strategy is to identify the major support and resistance levels in the market and then trade accordingly.

There are a few different ways to calculate pivot points, but the most common method is to take the average of the high, low, and close prices from the previous day. This gives you a central point around which to base your trading decisions.

Which pivot points are best for swing trading

Once you have calculated the pivot point for the current day, you can then look for trading opportunities around that level. If the market is trending upwards Ary Aind Indicator, you would look for buying opportunities near the pivot point.

Conversely, if the market is trending downwards, you would look for selling opportunities near the pivot point. One thing to keep in mind when using this Dip Strategy is that pivot points are typically more accurate in longer timeframes such as daily or weekly charts.

Therefore, it is important to use other technical indicators in conjunction with pivot points to confirm any potential trading signals.

Types of Pivot Point Trading Strategies

There are three main types of pivot point trading strategies:

The first is the classic pivot point strategy, which involves taking a long or short position at the point of the breakout.
The second is the Fibonacci pivot point strategy, which uses Fibonacci levels to identify potential support and resistance levels.
The third is the Camarilla pivot point strategy, which uses a different formula to calculate potential support and resistance levels.

Each of these pivot point trading strategies has its own pros and cons, so it’s important to choose the one that best suits your trading style and objectives.

Calculating and Formula Pivot Points Indicator

Pivot points are technical analysis indicators used to identify potential support and resistance levels in the market. They are calculated using the high, low, Stochastic Divergence and close prices of the previous period.

There are a few different methods for calculating pivot points, but the most common one is the five-point system. This system uses the following formulas:

Pivot point (PP) = (High + Low + Close) / 3

First resistance level (R1) = 2 * PP – Low

First support level (S1) = 2 * PP – High

Second resistance level (R2) = PP + (High – Low)

Second support level (S2) = PP – (High – Low)