lots of pivot points indicators for MT4 platforms: pivot points indicators
Traders use pivot points to identify potential support and resistance levels, which are price levels at which the direction of price movement can change. Very objective method to apply!
Pivot points are calculated using the last trading session's Open, High, Low and Close prices. Since Forex is a 24-hour market, most traders use the New York closing time of 4:00pm EST as the previous day's close, but test if it really works best for you this way.
There is very nice tutorial on Pivot Points available here: http://www.babypips.com/school/forex-pivot-points.html
See examples of the pivot points ploted on the real charts (different MT4 indicators were used to prepare these screenshots so you can get a feeling on the different visualization opportunities):
Note: Pivot, DPV = Pivot Point, S = Support, R = Resistance
As you can see different pivot points act often enough as perfect support and resistance levels. Therefore also Pivot points serve as very good (and objective!) confirmation method for the harmonic trading.
When projecting point D for the Gartley pattern check also the location of the closest pivot points.
Best if point D identified from the Gartley measurements is located on one of the pivots.
The following video presents this technique best:
Last edited by kor4x; 02-11-2012 at 08:08 PM.
If you are day / swing trading do you just use the standard daily pivots or do you also use the weekly and monthly pivot points?
Daily, weekly & monthly. I like when they confirm the entry location, the more the better, ... but if I see other confirmations at my possible entry level, but not pivots, I also can take the trade. Still learning and observing...