BTCUSD Trend Indicators
Pivot Points are used by cryptocurrency traders to find support and resistance areas based on the previous day's bitcoin price action.
This btcusd indicator is a very useful tool that use the previous bars' highs, lows & closings to project support & resistance levels for future bars.
This btcusd indicator provides an idea of where key support and resistance should be. Place the pivot points on your crypto charts and bitcoin price will bounce off one of these levels. These levels are used by cryptocurrency traders to determine market tops, market bottoms or bitcoin trend reversals.
- Daily pivots points are calculated from previous trading day's high, low, close
This btcusd indicator is shown below
Analysis in Bitcoin Crypto Currency Trading
The central pivot itself is the primary level, which is used to determine the market trend
The other support & resistance levels are also crucial in calculating levels that can generate significant market movements.
This btcusd indicator can be used in 2 ways
The first way is for determining overall Bitcoin trend: if the pivot point is broken in an upward movement, then the btcusd trading market is bullish, and vice versa. However, pivot levels are short term bitcoin trend indicators, useful only for one day until they need to be recalculated.
The second method is to use these points to enter and exit the btcusd trading markets. This btcusd indicator is a useful tool that can be used to calculate the areas that are likely to cause bitcoin price movement.
These points should be used conjunction with other forms of trading analysis such as Moving averages, MACD and stochastic oscillator trading indicator.
This btcusd indicator can be used in many different ways. Here are a couple of the most commonly techniques for utilizing them.
Bitcoin Trend Direction: Combined with other trading analysis methods such as oversold/overbought oscillators technical indicators, volatility measurements, the central point might be useful in determining the general trending direction of the market. Trades are only opened in direction of Bitcoin trend. Buy signal occurs only when the btcusd trading market is above the center pivot point and sell cryptocurrency signal occur only when the btcusd trading market is below the center pivot point.
Bitcoin Price Breakouts: A bullish signal occurs when the btcusd trading market breaks up through the center pivot point or one of the resistances (typically Resistance Area 1). A bearish signal occurs when the btcusd trading market breaks down through the center point or one of the supports (typically Support Area 1).
Bitcoin Trend Reversals:
- A buy cryptocurrency signal occurs when the bitcoin price moves towards a support zone, gets very near to this point, touches this point, or only moves slightly through it, & then reverses & moves back in opposite trend direction.
- A sell cryptocurrency signal occurs when the bitcoin price moves towards a resistance level, gets very near to this point, touches this point, or only moves slightly through it, & then reverses & moves back in opposite direction.
Stop Loss &/or Limit Profit Values Determined by Support/Resistance: This btcusd indicator might be potentially helpful in determining suitable stoploss order and/or limit profit placements. For example, if trading a long break out above the Resistance 1 it may be reasonable to position a stoploss.
Combining with MA Crossover System
A good indicator to combine and trade reversal bitcoin trading signals is the moving average crossover which can be used to confirm the direction of a reversal bitcoin signal.
An investor can then open an order once these two indicators give a trading signal in same direction.
MA Cross over Strategy Method
Moving average crossover method that can be combined with this indicator to come up with a tradingtrade system for generating buy & sell bitcoin signals.
To download Pivot points Technical Indicator:
https://c.mql5.com/21/9/pro4x_pivot_lines.mq4
Once you download it open it with MQ4 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 MetaTrader 4, trading indicator has additional lines named Mid Points, to remove these additional lines open the MQL4 Language MetaEditor(short cut keyboard key - press F4), and change line 16 from:
Extern bool mid-pivots = true:
To
Extern bool mid-pivots = false:
Then Press Compile again, and it'll then appear as exactly shown on this web site.
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