ActivTrades’ Pivot Points Indicator

Traders often use various indicators to help them make their trading decisions. Some indicators are good, others – not so much. The competitive online broker ActivTrades is offering their clients the excellent, reliable Pivot Points Indicator, which has been developed for both MT4 and MT5 platforms with three levels of support and resistance.

For example:

The lines displayed on the chart represent the Pivot Point (Orange) as well as Support and Resistance levels (Dark Blue, Maroon and Green). If the price is above the Pivot Point, the market is usually considered as bullish, whereas price below the Pivot Point is usually seen as a bearish market. Supports and resistances help determine potential reversals levels of the current market trend.

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

Support and resistance levels are then calculated off the pivot point as follow:

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)

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