BeST_ Classic Pivot Points is an MT4 Indicator that is based on the widely known and definitely classic Pivot Point of a market prices activity.A pivot point is calculated as an average of significant prices (high,low,close) from the performance of a market in the prior trading period. If the market in the following period trades above the pivot point it is usually evaluated as a bullish sentiment, whereas trading below the pivot point is seen as bearish.A pivot point and the associated support and resistance levels are often turning points for the direction of price movement in a market.
In an up-trending market , the pivot point and the resistance levels may represent a ceiling level in price above which the uptrend is no longer sustainable and a reversal may occur.In a declining market, a pivot point and the support levels may represent a low price level of stability or a resistance to further decline ( Wikipedia ).
The calculation for a PP and its associated S & R levels is shown below:
- Pivot point (PP) = (High + Low + Close)/3
- First resistance (R1) = (2 x PP) – Low
- First support (S1) = (2 x PP) – High
- Second resistance (R2) = PP + (High – Low)
- Second support (S2) = PP – (High – Low)
- Third resistance (R3) = High + 2(PP – Low)
- Third support (S3) = Low – 2(High – PP)
Trading with pivot points is the ultimate support and resistance strategy .It takes away the subjectivity involved with manually plotting S and R levels.
Input Parameters
Basic Settings
- Select Current Day's Rectangle Color – for selecting the color of the Rectangle that includes all the bars of the current day
- Select Current Day's Vertical Line Color - for selecting the color of the Vertical Line that specifies the starting moment of the current day
- Show Sunday Trading Hours – true if on our Chart there are trading bars on some hour of Sunday and false otherwise
- Sunday Trading Start Time – for making input the exact time that trading starts on
Pivots Settings
For selecting the color , style and size of drawn lines and text.
