The MT4 pivot point indicator is a common tool for the majority of traders who try to detect the best support and resistance potential areas. The indicator has become extremely popular with both newbies and experts. The main advantage is the ability of pivot points to ensure objective mathematical calculations instead of subjective manual drawing and plotting.
In this article, you will learn how to use, trade, and download free pivot points indicator for MT4. Besides, we will show you how to make calculations or add the indicator to your trading chart.
MT4 Pivot Point Indicator Explained
The MT4 pivot indicator comes with specific points that actually identify the potential support and resistance area. Those points are called "pivot" because they show where the price can make an unexpected change or turn in the opposite direction unexpectedly.
As we have stated earlier, the mt4 pivot indicator uses a set of calculation tools along with the pivot points that reflect not only support and resistance but can also be found at the same level as Fibonacci. In other words, the instrument uses two different calculation methods providing traders with a vision of where the price is going to move.
To make the most of the pivot point indicator for mt4, you will need to add it to your chart. You may download it free without extra charges. Besides, traders can seamlessly add the indicator to their trading charts. We will show you the process a bit further.
How the Pivot Point Indicator for MT4 Works
As you already know, the pivot points appear to the indicator's fundamental components. They come as values for the price action reflected from the previous day.
What's more, thanks to the point, the indicator is able to plot up to three support and resistance levels during a single daily trading session. The pivot point for the day will be located in the middle point between the support and resistance levels.
As a result, you have several pivot points on the chart. They say that the price can make a turn at any of them. However, there is a chance that the price will break through those points but only in case of an extreme level of volatility. As a result, the indicator applies more to intraday traders rather than swing traders.
How to Make Calculations with Pivot Point Indicator for MT4
To make calculations for the support and resistance when the pivot point is located in the middle between them, you need to consider the following:
- Resistance 1 – to calculate it, you need to multiply the pivot point by two. The next stage is to subtract it from the low identified the previous day.
- Support 1 – you do the same as in the method above but extract the multiplied pivot point from the previous day's high.
- Resistance 2 – here we need to calculate the difference between the previous day's high and low as well as calculate the sum of all pivot points detected during the current day.
- Support 2 – once again we will need to calculate the difference between high and low as well as the difference between pivot points detected during the current day.
Different Point Trading Strategies with MT4 Pivot Point Indicator
If you want to trade pivot points successfully, the best bet is to opt for the two most effective strategies. They include:
- Buying and selling from the pivot point as well as support and resistance levels.
- Trading during fast price moves when it breaks out the pivot point as well as support and resistance.
You may try to use other strategies. The indicator delivers enough trading flexibility. Besides, it can be used with other technical indicators to ensure an in-depth market analysis and precise price movement forecasts. All we need is to download the pivot point indicator for MT4. It is absolutely free. Just follow the link below and add the indicator to your trading chart:
Steps to Download Pivot Point Indicator for MT4 Free
First of all, you need to make sure your trading charts are correct and you are well aware of how to read them. The next stage is to download the MT4 Pivot Point Indicator free. No registration or billing information is required. Once you have added it to the chart, it will automatically display pivot point levels no matter if you use Classical, Camarilla, Woodie, and Fibonacci.
To add an indicator to your installed MT4 platform, follow these steps or watch the video below:
- Download a Pivot Point indicator installation file. Extract it.
- Run the MT4 platform.
- Choose File – Open Data Folder – MQL4 – Indicators.
- Transfer the Pivot Point installation file to the folder inside the indicator.
- Restart the MT4 platform and check if the indicator is available in the Indicators custom section.
- Put a tick next to the 'Allow DDL imports' request. You will see the indicator as multiple thin lines on your chart.
What's more, traders can customize the indicator to meet their specific trading strategies. The tool comes with settings that will let you change the line color, the number of periods to be displayed on the chart, so on.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.