Hi, I just read about calculating the Pivot point which is really cool. And i need to make sure that I do understand about using the “PREVIOUS” day,month, week etc as basis. If, let’s say i am trading using the D1 time frame,does that mean I will use the previous candle’s High,Low and close as basis? Please help me.
Thanks.
You would be using the prior day’s performance - open low close - to set the pivots for the current day on the day chart. Use the babypips pivot calculator:
Pivot Point Calculator: Free Online Calculations of Forex Pivot Points
The pivots calculated apply to the matching chart timeframe. I looked at them but the ranges are so tight! Too tight for me at this point.
Most broker platforms should come w/ a Pivot Point indicator for free.
I think i’m getting the idea but i would appreciate if someone would give an example. Thanks.
Here’s the indicator I’m using for pivots…and the attached excel file if you wan’t to do it manually
PivotPoint.zip (14.9 KB)
OK I will bite in the hopes that if I am wrong someone will correct me and we both will learn…
First - pivots are calculated on the prior periods open and close - here I am using dailyfx pivot numbers from YESTERDAYS ENTIRE DAY.
I take those values and set lines on a DAILY CHART FOR THE SAME PAIR. S = Support and R = Resistance and P the main pivot. As you can see they do outline a valid range on the daily chart. My understanding is you want to use these support and resistance lines as they extend into your lower time frames of 4hr 1hr etc. as they are more trend aware.
Pivots are used to determine when prices are range bound so you know when a major move (breakout) occurs. They are also used for Fibonacci retracements and extensions. As this price closed far from the central pivot - price should move TOWARD the central pivot before making any major moves on the 21st - so an article I read states (we’ll see ) Hope this helps.
I can’t thank you enough. Thank you very much. I appreciate it.
No problem - glad to try to help…
Thank you very much. I’m very grateful.
Thank you very much for the file Miliardo. I am very grateful.
Using DailyFX pivot numbers is only to make a example…in reality you want to use your platforms Daily high, low and close and calculate pivots from those values.
Second…you don’t plot pivot points on Daily chart because then you would have only one candle (Daily) and what will you do with it? You will use those pivots on lower time frames for that day.
Third…combine weekly and monthly pivots to gain a better picture of possible price movement…and to see if there are confluence zones where some pivot lines overlap each other…
Hi Miliardo. I need your help. Which folder do i save the the indicator? Thanks.
The one where you installed your MT4 platform…in my case that would be “C:\Program Files\Metatrader - Alpari UK\ MQL4\Indicators” … find that indicators folder and copy it there 
My mt4 does not use that folder (windows 7)…In MT4 click file…open data folder …browse to the mql4\indicators and paste the file there. I wonder if MT4 varies between brokers?
I have Windows 7 also…but 32bit. Maybe you have 64bit? In that case look for Program Files (x86) folder…
