Pivot Points BTCUSD Analysis & Pivot Points Trading Signals

This indicator consists of a central pivot which is surrounded by Three resistance levels below & Three support levels above.

Initially these points were used by floor traders to analyze & trade the equities and futures cryptocurrency markets. This technical indicator is considered to be leading rather than lagging.

Pivots provide a quick way for cryptocurrency traders to analyze the general trend of how the btcusd trading market is going to be moving during the course of the day. A few simple calculations are used to draw the resistance and support levels.

To calculate these points for the coming trading day is the previous day's

• high,
• low, and
• close bitcoin prices are used

The cryptocurrency trading day closes and this daily closing time is when the indicator is updated.

The 24-hour cycle for this indicator are calculated using a complex formula. Central pivot is then used to calculate the support & resistance areas as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

Bitcoin Analysis & Generating Trading Signals

This indicator can be used in different ways to generate cryptocurrency signals. Following techniques are the most common technical analysis:

Bitcoin Trend Identification Trading Signals

The central pivot is used by cryptocurrency traders to determine the general market trend direction. Trades taken will only be in direction of the market trend.

• Buy trading signal - price is above the central point
• Sell trading signal - price is below the central point

Price Breakout Signals

Price breakout signals are generated as follows

• Buy signal- is generated when the bitcoin price breaks upwards through the central point.
• Sell signal- is generated when the bitcoin price breaks-out downward through the central point.

Price Break out

Price Reversal Trading Signal

Price reversals are generated as follows

Buy Trading Signal- when bitcoin price moves down towards one of the support area, then touches the support or moves slightly through it then quickly reverses and moves upwards.

Sell Trading Signal- when bitcoin price moves up towards one of the resistance area, then touches the resistance or moves slightly through it then quickly reverses and moves downwards.

Price Reversal Trading Signal

Setting Stoploss and Limit Profit Values

The central pivot and the other support and resistance levels are used by cryptocurrency traders to determine suitable stop loss and limit profit levels.

Setting Stoploss and Limit Profit

If a buy is placed above the central point the Resistance 1 or Resistance 2 can be used to set the take profit level, & the Support 1 can be set as a Stop-Loss Bitcoin Order Level for the trade.

To download Pivot points:

https://c.mql5.com/21/9/pro4x_pivot_lines.mq4

Once you download it open it with MQL4 Language Editor, Then Compile it by pressing the Compile Button and it will be added to your MT4.

Note: Once you add it to your MT4, technical indicator has additional lines named Mid Points, to remove these additional lines open the MQL4 Language MetaEditor(shortcut keyboard key - press F4), & change line 16 from:

Extern bool midpivots = true:

To

Extern bool midpivots = false:

Then Press the Compile button again, & it will then appear as is exactly displayed on this site.