The Universal Pivot Point MT4 forex indicator is a very popular trading tool used by many currency traders.
This indicator draws the Pivot Point together with all support (S1, S2, S3) and resistance levels (R1, R2, R3) on the activity chart.
Price action above the Universal Pivot Point is bullish while price action below is bearish.
Traders typically look for buy trade opportunities above the pivot point while looking for sell trade opportunities below the pivot point.
Open buy trades are typically closed at or near resistance levels R1, R2 or R3.
Open sell trades are typically closed at or near support levels S1, S2 or S3.
Pivot Point trading is very popular among forex scalpers and day traders.
The GBP/USD H1 chart below displays the Universal Pivot Point forex indicator in action.
Basic Trading Signals
Signals from the Universal Pivot Point forex indicator are easy to interpret and goes as follows:
Buy Signal: Open buy trade when price crosses and closes above the Universal Pivot Point from below.
Sell Signal: Open sell trade when price crosses and closes below the Universal Pivot Point from above.
Trade Exit: For buy trades, exit the trade at R1, R2 or R3. For sell trades, exit the trade at S1, S2 or S3. Or use your own preferred method of trade exit.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (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: Pivot point | Support & Resistance
Copy and paste the universal-pivot-indicator.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)