Introduction to the Pivot Lines Time Zone Indicator
Pivot Point levels are critical levels which many professional traders use, including institutional traders trading for big banks. However, the Pivot Point levels we are using may differ from what they are using. This is because our indicators may be calculating Pivot Points based on different open, high, low, and close price levels.
This indicator allows users to adjust the time zone for the Pivot Points, which can compensate for the time difference between the Pivot Point used on our platforms and the Pivot Point levels based on major markets.
What is the Pivot Lines Time Zone Indicator?
The Pivot Lines Time Zone Indicator is a technical indicator which is a variation of the classic Pivot Point Indicator. Pivot Point indicators are technical trading tools used to determine the overall trend of the market, as well as price points which can be used as support and resistance levels using the previous period’s key price levels. This could either be a daily, weekly, or monthly Pivot Point.
The Pivot Lines Time Zone Indicator is a Daily Pivot Point indicator which allows users to modify the time which the indicator would use as the start of day. This allows traders to modify the time zone or trading session which they would like to base their Daily Pivot Points on.
This indicator plots the main Pivot Point (PP), as well as three Support levels (S1, S2, and S3), and three Resistance levels (R1, R2, and R3).
How the Pivot Lines Time Zone Indicator Works?
The Pivot Lines Indicator uses the lower timeframes as a basis for its start of day. This allows the indicator to detect a different open, high, low, and close price for the day based on the user’s preferred time zone. It then calculates for the different Pivot Point levels using the basic formula for the Pivot Points.
PP = (High + Low + Close) / 3
R1 = (PP x 2) – Low
R2 = PP + (High – Low)
S1 = (PP x 2) – High
S2 = PP – (High – Low)
This indicator also plots additional Pivot Point levels based on the Mid Pivots. It can also plot Pivot Point lines using the Camarilla Pivot Point method.
How to use the Pivot Lines Time Zone Indicator for MT5
This indicator has several options within its settings.
“DayStartHour” and “DayStartMinute” allows users to modify the start time of day to adjust for the time zone.
“PivotBuffers” draws historical Pivot Point lines, while “PivotLines” draw the current day’s levels.
“MidpivotsBuffers” adds the historical Mid Pivot Points, while “MidPivotLines” adds today’s Mid Pivot Points.
“CamarillaBuffers” adds the historical Camarilla Pivot Points, while “CamarillaLines” adds today’s Camarilla Pivot Points.
The other options modify the color to the lines the indicator plots.
Buy Trade Setup
When to Enter?
Open a buy order as soon as a bullish reversal pattern forms on a Support level.
When to Exit?
Set the take profit target on the next Pivot Point level above the entry candle.
Sell Trade Setup
When to Enter?
Open a sell order as soon as a bearish reversal pattern forms on a Resistance level.
When to Exit?
Set the take profit target on the next Pivot Point level below the entry candle.
Conclusion
Having the ability to adjust the Pivot Point levels to match that of the major markets allows us to have more reliable Pivot Point levels. This gives us the confidence that the levels we are seeing are most likely the levels which professional traders are also using.
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