Pivot Points Bitcoin Trading Analysis and Pivot Points Bitcoin Trading Signals

This btcusd indicator consists of a central pivot which is surrounded by 3 resistance levels below and 3 support levels above.

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

Pivots provide a quick way for cryptocurrency traders to analyze the general bitcoin 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. The central pivot is then used to calculate the support and resistance levels as follows:

Resistance 3

Resistance 2

Resistance 1

Pivot Point

Support 1

Support 2

Support 3

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

This btcusd indicator can be used in different ways to generate cryptocurrency trading signals. The following methods are the most common technical analysis:

Bitcoin Trend Identification Signals

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

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

Bitcoin Price Breakout Signals

Bitcoin Price breakout signals are generated as follows

• Buy signal- is generated when the btcusd price breaks upwards through the central point.
• Sell signal- is generated when the btcusd price breaks downwards through the central point.

Bitcoin Price Breakout

Bitcoin Price Reversal Bitcoin Trading Signal

Bitcoin Price reversals are generated as follows

Buy signal- when btcusd price moves down towards one of the support level, then touches the support or moves slightly through it then quickly reverses and moves upwards.

Sell signal- when btcusd price moves up towards one of the resistance level, then touches the resistance or moves slightly through it then quickly reverses and moves downwards.

Bitcoin Price Reversal Bitcoin Trading Signal

Setting Stop loss 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 Stop loss 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, and the Support 1 can be set as the 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 MetaTrader 4.

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

extern bool midpivots = true;

to

extern bool midpivots = false;

Then Press Compile again, and it will then appear as exactly shown on this website.