Pivot1
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This tool is designed to provide traders with a visual roadmap of potential price levels on a trading chart. It automates the calculation of "Pivot Points," which are standard technical analysis markers used to identify areas where the market might encounter resistance (difficulty moving higher) or support (difficulty moving lower).
How the Logic Works
The script functions by analyzing historical price data to determine key levels for each period on your chart. Here is the step-by-step logic it follows:
1. Data Gathering The tool looks back at the previous candle's price action to find the highest point reached (High), the lowest point reached (Low), and the price at which it finally closed (Close). It uses these three specific numbers as the foundation for all its calculations.
2. The Central Pivot Point The core of the logic calculates a "Pivot Point" by taking the average of the previous High, Low, and Close prices. This serves as the primary anchor or "balance point" for the current period. If the price is above this point, it often suggests bullish sentiment; if below, it may suggest bearish sentiment.
3. Support and Resistance Levels Beyond the central Pivot Point, the script automatically generates six additional levels to help define the boundaries of the market's movement:
- Primary Levels (R1, S1): These are the immediate floors and ceilings surrounding the central Pivot Point. They represent the most likely areas where price may react in the short term.
- Secondary Levels (R2, S2): These provide a wider range of support and resistance. They are calculated based on the distance between the previous high and low, helping traders identify deeper "zones" of interest.
- Tertiary Levels (R3, S3): These are extended levels. They represent extreme price targets or significant "breakout" zones that occur when the market moves with high momentum far beyond the standard range.
4. Dynamic Visual Mapping The script is designed to be dynamic. Instead of just showing one set of numbers, it constantly updates as new candles form. It places these levels on your chart as visual lines and text labels, allowing you to see how the "map" of the market evolves in real-time.
Summary for the Trader
Essentially, this script does the heavy lifting of math for you. Instead of manually calculating where the next major price barriers might be, the tool automatically plots a grid of "floors" (Support) and "ceilings" (Resistance). This allows you to quickly identify high-probability areas to consider entering or exiting trades based on historical price behavior.
//+------------------------------------------------------------------+
//| Pivot1.mq4 |
//| Copyright © 2004, Poul_Trade_Forum |
//| Aborigen |
//| http://forex.kbpauk.ru/ |
//+------------------------------------------------------------------+
#property copyright "Poul Trade Forum"
#property link "http://forex.kbpauk.ru/"
#property indicator_chart_window
//#property indicator_separate_window
#property indicator_buffers 7
#property indicator_color1 Orange
#property indicator_color2 DarkBlue
#property indicator_color3 Maroon
#property indicator_color4 DarkBlue
#property indicator_color5 Maroon
#property indicator_color6 Green
#property indicator_color7 Green
//---- input parameters
//---- buffers
double PBuffer[];
double S1Buffer[];
double R1Buffer[];
double S2Buffer[];
double R2Buffer[];
double S3Buffer[];
double R3Buffer[];
string Pivot="Pivot Point",Sup1="S 1", Res1="R 1";
string Sup2="S 2", Res2="R 2", Sup3="S 3", Res3="R 3";
int fontsize=10;
double P,S1,R1,S2,R2,S3,R3;
double LastHigh,LastLow,x;
//+------------------------------------------------------------------+
//| Custor indicator deinitialization function |
//+------------------------------------------------------------------+
int deinit()
{
//---- TODO: add your code here
ObjectDelete("Pivot");
ObjectDelete("Sup1");
ObjectDelete("Res1");
ObjectDelete("Sup2");
ObjectDelete("Res2");
ObjectDelete("Sup3");
ObjectDelete("Res3");
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator initialization function |
//+------------------------------------------------------------------+
int init()
{
string short_name;
//---- indicator line
SetIndexStyle(0,DRAW_LINE,0,2,Orange);
SetIndexStyle(1,DRAW_LINE,0,2,DarkBlue);
SetIndexStyle(2,DRAW_LINE,0,2,Maroon);
SetIndexStyle(3,DRAW_LINE,0,2,DarkBlue);
SetIndexStyle(4,DRAW_LINE,0,2,Maroon);
SetIndexStyle(5,DRAW_LINE,0,2,Green);
SetIndexStyle(6,DRAW_LINE,0,2,Green);
SetIndexBuffer(0,PBuffer);
SetIndexBuffer(1,S1Buffer);
SetIndexBuffer(2,R1Buffer);
SetIndexBuffer(3,S2Buffer);
SetIndexBuffer(4,R2Buffer);
SetIndexBuffer(5,S3Buffer);
SetIndexBuffer(6,R3Buffer);
//---- name for DataWindow and indicator subwindow label
short_name="Pivot Point";
IndicatorShortName(short_name);
SetIndexLabel(0,short_name);
//----
SetIndexDrawBegin(0,1);
//----
//----
return(0);
}
//+------------------------------------------------------------------+
//| Custom indicator iteration function |
//+------------------------------------------------------------------+
int start()
{
int counted_bars=IndicatorCounted();
int limit, i;
//---- indicator calculation
if (counted_bars==0)
{
x=Period();
if (x>10080) return(-1);
ObjectCreate("Pivot", OBJ_TEXT, 0, 0,0);
ObjectSetText("Pivot", " Pivot Point",fontsize,"Arial",Red);
ObjectCreate("Sup1", OBJ_TEXT, 0, 0, 0);
ObjectSetText("Sup1", " S 1",fontsize,"Arial",Red);
ObjectCreate("Res1", OBJ_TEXT, 0, 0, 0);
ObjectSetText("Res1", " R 1",fontsize,"Arial",Red);
ObjectCreate("Sup2", OBJ_TEXT, 0, 0, 0);
ObjectSetText("Sup2", " S 2",fontsize,"Arial",Red);
ObjectCreate("Res2", OBJ_TEXT, 0, 0, 0);
ObjectSetText("Res2", " R 2",fontsize,"Arial",Red);
ObjectCreate("Sup3", OBJ_TEXT, 0, 0, 0);
ObjectSetText("Sup3", " S 3",fontsize,"Arial",Red);
ObjectCreate("Res3", OBJ_TEXT, 0, 0, 0);
ObjectSetText("Res3", " R 3",fontsize,"Arial",Red);
}
if(counted_bars<0) return(-1);
//---- last counted bar will be recounted
// if(counted_bars>0) counted_bars--;
limit=(Bars-counted_bars)-1;
for (i=limit; i>=0;i--)
{
if (High[i+1]>LastHigh) LastHigh=High[i+1];
if (Low[i+1]<LastLow) LastLow=Low[i+1];
P=(LastHigh+LastLow+Close[i+1])/3;
R1 = (2*P)-LastLow;
S1 = (2*P)-LastHigh;
R2 = P+(LastHigh - LastLow);
S2 = P-(LastHigh - LastLow);
R3 = (2*P)+(LastHigh-(2*LastLow));
S3 = (2*P)-((2* LastHigh)-LastLow);
LastLow=Open[i]; LastHigh=Open[i];
ObjectMove("Pivot", 0, Time[i],P);
ObjectMove("Sup1", 0, Time[i],S1);
ObjectMove("Res1", 0, Time[i],R1);
ObjectMove("Sup2", 0, Time[i],S2);
ObjectMove("Res2", 0, Time[i],R2);
ObjectMove("Sup3", 0, Time[i],S3);
ObjectMove("Res3", 0, Time[i],R3);
PBuffer[i]=P;
S1Buffer[i]=S1;
R1Buffer[i]=R1;
S2Buffer[i]=S2;
R2Buffer[i]=R2;
S3Buffer[i]=S3;
R3Buffer[i]=R3;
}
//----
return(0);
}
//+------------------------------------------------------------------+
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