Author: MetaQuotes
The DailyPivot Shift indicator is a step up from the standard DailyPivot indicator. What sets it apart? This nifty tool calculates pivotal levels using a day start shift, allowing you to base these calculations on your local time—think GMT-8, for example. Plus, it skips over weekend quotes when generating levels for Monday, keeping your analysis clean and focused.
So, what exactly is a Pivot Point (PP)? Simply put, it's the price level that acts like a magnet throughout the trading day. By using the previous day's maximum, minimum, and closing prices, this indicator can nail down 13 levels for smaller timeframes. You get the equilibrium point, along with 6 resistance levels and 6 support levels. We like to call these levels 'check points.' They help you easily spot the direction of the minor trend. The three key values to keep an eye on are the equilibrium point, Resistance1 (RES1.0), and Support1 (SUP1.0). It's common to see price pauses or even pullbacks as it fluctuates between these values.
Here’s what the DailyPivot indicator can do for you:
- Forecast the potential range of price movement;
- Indicate possible price stopping points;
- Signal potential reversal points in price direction.
If the market opens above the equilibrium point, it’s a green light for long positions. Conversely, if it opens below, it might be a good day to consider short positions.
The check point method involves monitoring for turns or breakouts when the price meets resistance at RES1.0 or support at SUP1.0. By the time the price hits RES2.0, RES3.0, or SUP2.0, SUP3.0, you’ll often find the market is overbought or oversold. These levels are often your exit points.
This indicator was originally developed in MQL4 and first appeared in the Code Base at mql4.com on July 28, 2006.
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