Pivot Points BTCUSD Analysis and Pivot Point Trading Signals

This btcusd 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 markets. This btcusd technical indicator is considered to be leading rather than lagging.

Pivots provide a quick way for traders to analyze the general bitcoin trend of how the btcusd 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 day is the previous day's

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

The 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 Points

Support 1

Support 2

Support 3

Bitcoin Analysis and Generating Trading Signals

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

Bitcoin Trend Identification Signals

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

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

Bitcoin Price Breakout Signals

Bitcoin 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 down ward through the central point.

Bitcoin Price Break out

Bitcoin Price Reversal Signal

Bitcoin Price reversals are generated as follows

Buy 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 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.

Bitcoin Price Reversal Signal

Placing Stoploss and Limit Profit Values

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

Placing 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 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 & it'll be added to your MT4.

Note: Once you add it to your Meta Trader 4, indicator has additional lines named Mid Points, to remove these additional lines open the MQL4 Language MetaEditor(shortcut keyboard key - press F4), and change line 16 from:

Extern bool midpivot = true:

To

Extern bool midpivot = false:

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