Pivot Points Metatrader 5 Forex Indicator
The Pivot points Metatrader 5 indicator as described by Jamie Saettele in the March 2009 SFO magazine article “Trading FX Like Jesse Livermore Traded Stocks”.
The Livermore’s strategy was built on what he tagged “pivotal points”.
There’s virtually no trader today that is unaware of the importance of pivot points, and a lot of them deploy some form of pivot points (of which there are too numerous to number) in a bid to spot support and resistance, which allows traders make the right entry and exit decisions in the market.
Livermore is the first trader on record to speak about the concept of pivots.
He’ll definitely be among the first, if he wasn’t the first in this field.
The vertical blue line represents the Pivot point, which Livermore defined as days that holds heavy volume.
After a protracted move, considerable volume increase was a key signal to him signaling that the market was at the tail of it major move.
Livermore will avoid closing his position instantly, rather he’ll wait for price to roll over and confirm that a reversal pivot point has been reached.
When a trend gets exhausted, we tend to refer to such reversal pivotal points as panic bottoms.
Not all reversals are a result of pivotal points.
We normally experience heavy volume at the end of a major move and also get same towards the middle of a trend.
The parameters of the Pivot points MT5 indicator are quite simple considering its dependence on the ATR calculation:
Look back bars – defines the maximal ATR value over n bars.
ATR period – defines the period used for the ATR (average True Range).
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart pattern indicator
Customization options: Variable (Look back bars, ATR period), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: chart pattern
Copy and paste the Pivotal points.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)