ActivTrades Tools: Pivot Points Indicator and why should we use it

Traders use different indicators in order to help them predict the market movements. It is very useful to have a powerful indicator that could make your  trading decision right.

My broker, ActivTrades, offers an excellent indicator for their customers  -  Pivot Points Indicator. 
It has been developed for both MT4 and MT5 platforms with three levels of support and resistance.  

Pivot Points Indicator helps to determine the overall trend of the market depending on the high low and the closing rate from the previous day.

 And here’s for example how it works:

The lines displayed on the chart represent the Pivot Point (Orange) as well as Support and Resistance levels (Dark Blue, Maroon and Green). If the price is above the Pivot Point, the market is usually considered as bullish, whereas price below the Pivot Point is usually seen as a bearish market. Supports and resistances help determine potential reversals levels of the current market trend.

Pivot point (PP) = (High + Low + Close) / 3

Support and resistance levels are then calculated off the pivot point as follow:

First resistance (R1) = (2 x PP) - Low

First support (S1) = (2 x PP) – High

Second resistance (R2) = PP + (High - Low)

Second support (S2) = PP - (High - Low)

Third resistance (R3) = High + 2(PP - Low)

Third support (S3) = Low - 2(High - PP)

If you wish to take advantage of this exclusive tool, please follow this link.