This tool is designed to help traders identify key price levels on a chart by calculating and displaying "Pivot Points" based on previous market activity. These levels act as potential areas of support (where prices might stop falling) and resistance (where prices might stop rising).
How the Logic Works
The script analyzes historical price data—specifically the high, low, and closing prices from the previous trading session—to project key levels onto the current chart. Here is a breakdown of the core mechanics:
1. Data Identification The system automatically scans the market history to identify three primary values from the preceding day:
- Yesterday's High: The highest price reached during the last session.
- Yesterday's Low: The lowest price reached during the last session.
- Yesterday's Close: The final price at which the previous session ended.
2. Calculation of Key Levels Once the daily data is captured, the script uses a standard mathematical formula to generate the following indicators:
- The Pivot Point: This is the "equilibrium" price for the day, calculated by taking the average of yesterday's high, low, and close.
- Resistance 1 (R1) & Support 1 (S1): These represent the first major boundaries beyond the Pivot Point. They are calculated based on the relationship between the Pivot and the previous day's extremes.
- Support and Resistance Targets: The script also tracks specific price targets influenced by a user-defined "Offset," which allows for some flexibility in how far above or below the opening price the levels are visualized.
3. Automation and Timing To ensure the data is always relevant, the script is programmed to recognize time zones. It looks for the exact moment a new trading day begins (based on the user's settings). At this specific moment, it automatically "refreshes" its memory, grabbing the finished numbers from the day that just ended and plotting the new levels for the current session.
Visual Output
The tool draws several distinct lines on your chart:
- Main Pivot Lines: Visual markers for the central price equilibrium and the primary support/resistance zones.
- Session Reference Lines: Additional lines that display the previous day's close, along with high and low targets, providing a visual "map" of where the price has been compared to where it is currently moving.
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//+------------------------------------------------------------------+
//| TimeZone Pivots.mq4 |
//| Copyright © 2005,|
//+------------------------------------------------------------------+
#property copyright "Copyright © 2005"
#property link ""
#property indicator_chart_window
#property indicator_buffers 8
#property indicator_color1 DarkOrange
#property indicator_color2 Khaki
#property indicator_color3 Khaki
#property indicator_color4 Khaki
#property indicator_color5 Khaki
#property indicator_color6 DarkViolet
#property indicator_color7 Blue
#property indicator_color8 Red
//#property indicator_color4 Gray
//---- input parameters
extern int Offset=14; // Number of pips above/below days open price
extern int TimeZoneOfData=0; // by default if time zone of data is at GMT 0
//---- buffers
double PivotArray[];
double R1Array[];
double S1Array[];
double R2Array[];
double S2Array[];
double R3Array[];
double S3Array[];
double TodayOpenBuffer[];
double YesterdayCloseBuffer[];
double YesterdayHighBuffer[];
double YesterdayLowBuffer[];
//---- variables
int indexbegin = 0;
double todayopen = 0;
double yesterdayclose = 0;
double barhigh = 0;
double dayhigh = 0;
double yesterdayhigh = 0;
double barlow = 0;
double daylow = 0;
double yesterdaylow = 0;
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
//---- indicators
// Pivot
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,PivotArray);
IndicatorShortName("TDPivot");
SetIndexLabel(0,"Pivot");
SetIndexEmptyValue(0, 0.0);
// Resistance 1
SetIndexStyle(1,DRAW_LINE);
SetIndexBuffer(1,R1Array);
SetIndexLabel(1,"R1");
SetIndexEmptyValue(1, 0.0);
// Support 1
SetIndexStyle(2,DRAW_LINE);
SetIndexBuffer(2,S1Array);
SetIndexLabel(2,"R1");
SetIndexEmptyValue(2, 0.0);
// Resistance 2
SetIndexStyle(3,DRAW_LINE);
SetIndexBuffer(3,R2Array);
SetIndexLabel(3,"R2");
SetIndexEmptyValue(3, 0.0);
// Support 2
SetIndexStyle(4,DRAW_LINE);
SetIndexBuffer(4,S2Array);
SetIndexLabel(4,"S2");
SetIndexEmptyValue(4, 0.0);
// You may also display the previous day close - high - low
//Daily Close
SetIndexStyle(5, DRAW_LINE);
SetIndexBuffer(5, YesterdayCloseBuffer);
SetIndexLabel(5, "Yesterday Close");
SetIndexEmptyValue(5, 0.0);
// Daily High
SetIndexStyle(6, DRAW_LINE);
SetIndexBuffer(6, YesterdayHighBuffer);
SetIndexLabel(6, "Low Target");
SetIndexEmptyValue(6, 0.0);
// Daily Low
SetIndexStyle(7, DRAW_LINE);
SetIndexBuffer(7, YesterdayLowBuffer);
SetIndexLabel(7, "High Target");
SetIndexEmptyValue(7, 0.0);
//----
indexbegin = Bars - 20;
if (indexbegin < 0)
indexbegin = 0;
return(0);
}
//+------------------------------------------------------------------+
//| Custor indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//----
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int i;
int counted_bars = IndicatorCounted();
double Pivot;
double R1;
double S1;
double R2;
double S2;
//---- check for possible errors
if (counted_bars < 0) counted_bars = 0;
//---- last counted bar will be recounted
if (counted_bars > 0) counted_bars--;
if (counted_bars > indexbegin) counted_bars = indexbegin;
for (i = indexbegin-counted_bars; i >= 0; i--)
{
if ( i == indexbegin-counted_bars)
{
dayhigh = High[i];
daylow = Low[i];
}
barlow = Low[i];
barhigh = High[i];
if ( barhigh >= dayhigh)
dayhigh = barhigh;
if ( barlow <= daylow)
daylow = barlow;
//Cycle through all the bars and fill the indicator bars with the Pivot point values
if ((TimeMinute(Time[i]) == 00) && (TimeHour(Time[i]) - TimeZoneOfData == 00))
{todayopen = Open[i];
yesterdayclose = Close[i+1];
yesterdaylow = daylow;
daylow = Low [i]; // input new day value
yesterdayhigh = dayhigh;
dayhigh = High [i]; // input new day value
Pivot = (yesterdayhigh + yesterdaylow + yesterdayclose)/3;
R1 = (2*Pivot)-yesterdaylow;
S1 = (2*Pivot)-yesterdayhigh;
}
//These can be used for any calculations
TodayOpenBuffer[i] = todayopen;
YesterdayHighBuffer[i] = yesterdayclose-(Offset*Point);
YesterdayLowBuffer[i] = yesterdayclose+(Offset*Point);
}
return(0);
}
//+------------------------------------------------------------------+
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