Shifted Daily Pivot Points Indicator
Platform: MT4 Type: Market Levels Last update: September 25, 2024The Shifted Daily Pivot Points Indicator for MT4 automatically draws a support/resistance on the charts. An important feature of that forex indicator is, that it doesn’t remove past pivot points, but instead, it just shifts to new pivot points.
Old pivot levels are kept as a reference. You can use it successfully for backtesting your trading strategies.
Using the Shifted Daily Pivot Points Indicator in practice
The Shifted Daily Pivot Points Indicator recognizes seven different pivot points for each day. The highlighted pivot levels act as support/resistance and can be used for making rejection, breakout, swinging, and trend-following trade entries.
They can also be used as potential target levels. We recommend using a target of at least 1:2 R:R while trading based on pivot points.
The most important level is called “Daily PP” which is located in the middle of all levels for a given day. That gray line indicates the possible breakout level of the price.
There are three more horizontal levels above and below the Daily PP.
The horizontal levels at the top work as resistance which defines potential take profit levels for long orders. Similarly, the levels at the bottom represent the support areas and take profit targets for short orders.
Buy Signal
Follow these steps for a long trade:
- Wait for the London session to start
- Open buy order when the price breaks above the daily PP
- Set stop loss at some pips below the daily PP
- Take profit when price rises to nearest upward pivot level
Sell Signal
Follow these steps for a short trade:
- Wait for the London session to start
- Open sell order when the price breaks below the daily PP
- Set stop loss at some pips above the daily PP
- Take profit when price falls to nearest downward pivot level
