Weekly Pivot Indicator for MetaTrader 4

November 12, 2014

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A Weekly Pivot Indicator is a technical analysis tool that is used to identify key levels of support and resistance in the market. It is based on the concept of pivot points, which are calculated using the high, low, and close prices of the previous trading day. The Weekly Pivot Indicator takes this concept one step further by calculating pivot points for the entire week, rather than just for a single day.

Why Use A Weekly Pivot Indicator?

There are several reasons why traders use the Weekly Pivot Indicator.

It can help identify key levels of support and resistance in the market, which can be used to make more informed trading decisions.
It can help traders identify potential entry and exit points for trades.
It can help traders identify trends in the market, which can be used to make more accurate predictions about future price movements.

How Does A Weekly Pivot Indicator Work?

The Weekly Pivot Indicator works by calculating pivot points for the entire week, based on the high, low, and close prices of the previous week. These pivot points are then used to identify key levels of support and resistance in the market. The pivot points are calculated as follows:

Pivot Point (PP) = (High + Low + Close) / 3
Resistance 1 (R1) = (2 x PP) – Low
Resistance 2 (R2) = PP + (High – Low)
Resistance 3 (R3) = High + 2 x (PP – Low)
Support 1 (S1) = (2 x PP) – High
Support 2 (S2) = PP – (High – Low)
Support 3 (S3) = Low – 2 x (High – PP)

What Are The Benefits Of Using A Weekly Pivot Indicator?

There are several benefits to using the Weekly Pivot Indicator.

It can help traders identify key levels of support and resistance in the market, which can be used to make more informed trading decisions.
It can help traders identify potential entry and exit points for trades.
It can help traders identify trends in the market, which can be used to make more accurate predictions about future price movements.

What Are The Drawbacks Of Using A Weekly Pivot Indicator?

While the Weekly Pivot Indicator can be a powerful tool for traders, there are also some drawbacks to using it.

First, it is based on historical data, which means that it may not always accurately predict future price movements.
Second, it can be difficult to use for traders who are new to technical analysis.
Finally, it can be time-consuming to calculate pivot points manually, which is why many traders use automated tools to do this for them.

What Are The Common Mistakes To Avoid When Using A Weekly Pivot Indicator?

There are several common mistakes that traders should avoid when using the Weekly Pivot Indicator in MetaTrader 4.

First, it is important not to rely solely on the indicator to make trading decisions.
Second, it is important not to use the indicator in isolation, but rather in conjunction with other technical analysis tools.
Third, it is important not to use the indicator without first backtesting it on historical data.
Finally, it is important not to use the indicator without first developing a solid risk management strategy.

What Are The Best Settings For A Weekly Pivot Indicator?

The best settings for a Weekly Pivot Indicator in MetaTrader 4 will depend on your trading style and preferences. However, some general guidelines can be followed.

First, it is important to use the default settings when first starting.
Second, it is important to experiment with different settings to find the ones that work best for you.
Finally, it is important to backtest the indicator on historical data to ensure that it is effective in different market conditions.

How to Trade with Weekly Pivot Indicator

Buy Entry

Wait for the price to break above the weekly pivot point.
Enter a long position at the market price.
Set the stop-loss order below the weekly pivot point.
Set the take-profit order at the first level of resistance.

Sell Entry

Wait for the price to break below the weekly pivot point.
Enter a short position at the market price.
Set the stop-loss order above the weekly pivot point.
Set the take-profit order at the first level of support.

Conclusion

The Weekly Pivot Indicator for MetaTrader 4 is a powerful tool that can help traders identify key levels of support and resistance in the market. By using this tool in conjunction with other technical analysis tools, fundamental analysis, and risk management strategies, traders can make more informed trading decisions and improve their chances of success.

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