MetaTrader’s Universal Pivot Indicator automatically plots pivot points and identifies them. The identified lines are marked as support (S1-S3) or resistance (R1-R3) and can be used to determine optimal trade entry and exit points.
This indicator uses an algorithm to track and calculate previous highs/low points. This could be the closing price of the highest or lowest price recorded for the day, week or month. These values are then plotted on the chart as pivot lines.
The dark blue line of this indicator indicates support levels, while the red line represents resistance levels. This technical tool is very useful for trading price reversals. It can be used as a strong support and resistance indicator. It is also good for breakout trading, as a broken support level can become a resistance level and vice versa.
The Universal Pivot Point indicator can be used for a variety of trading styles including swing, intraday/interday and scalping. It is easy to use, making it a good choice for beginners, intermediate and experienced Forex traders.
How to trade with the Universal Pivot Point Indicator
The indicator does not redraw and can be used independently for trade entry/exit. It is best used in combination with other technical indicators and price action for better trade setups.
Buy signal: Wait for the price to break through the red resistance level. Then, retest the indicator that has a clear wick rejection. In this case, you can either make a buy/sell trade in combination with the price action or make a call trade after the retested candle closes.
Sell signals. First, wait for the price to interact with the resistance level (red). Pay attention to the rejection of the wick. In this case, you can make a sell/short trade in combination with the price action (e.g. bearish engulfing, peg line, etc.).
You can also refer to the screenshot above to get a better idea of how to spot a good trade setup. While take profit and stop loss depends on each trader’s trading style, it is best to be realistic about the market. The Universal Pivot Point indicator allows for a 1:1 risk-reward ratio.
The Universal Pivot Point Indicator (MT4) is the best tool for identifying strong support and resistance levels for price reversals. The indicator combined with price action can improve your chances of winning trades. It is also available as a free download.