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.