The Pivot Levels (Pivot Points) indicator shows us standard information about prices, such as maximum, minimum and close, and uses it to predict possible levels of support and resistance.
View of the indicator on the chart:
The calculation of the PP key level is done according to the following formula:
PP = (H + L + C) / 3, where
- (H) - maximum of the previous day
- (L) - minimum of the previous day,
- (C) - closing price
Support and resistance levels are calculated as follows:
- First support S1 = 2 * PP - High;
- The first resistance R1 = 2 * PP - Low;
- The second support is S2 = PP – (High – Low);
- The second resistance R2 = PP + (High – Low);
- Third support S3 = PP – 2 * (High – Low);
- The third resistance R3 = PP + 2* (High – Low).
Medians are calculated as follows:
- M1= (S2+S1) / 2
- M2= (S1+PP) / 2
- M3 = (R1+PP) / 2
- M4 = (R2+R1) / 2
To add and set up the indicator, open the Indicator settings window.
Pivot Range - set the indicator’s time frame.
Render periods - set the displayed periods.
- Enabled - enable or disable this filter.
- Filter - select the number of displayed periods.
Show - display text on the maximum level line.
- On the left
- On the right
- Session begin - select the beginning of the session.
- Session end - select the end of the session.
Panel - choose the location of the indicator on the chart:
- New panel.
PP / The key level.
Show value - show the value of the indicator on the price scale.
Show zero values.
Scale - if this option is enabled, the scale will be automatically calculated based on the minimum and maximum values of the indicator so it would fit on the chart.
Color - the color of the line.
Visual type - a visual setting of the indicator display on the chart:
Line style - set the type of the line display:
Dash - dot
Dash - dot - dot
Width - set the thickness of the indicator line.
The settings are the same for R1, R2, R3, S1, S2, S3, M1, M2, M3, M4 lines.
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