Daily Pivot Support and Resistance Levels from High, Low, and Close

Summary

This indicator calculates a central pivot and three support and resistance levels from the prior daily high, low, and close. The pivot is the average of the high, low, and close, with the close counted twice. The first, second, and third levels are then derived through specified combinations of the pivot and daily range. These levels can be used as reference points for assessing potential support and resistance.

The document gives the formulas but does not describe entry rules, exits, position sizing, or how to validate the levels in a trading strategy. It reports that the indicator was first implemented in MQL4 and published in 2008, but supplies no backtest or evidence of predictive accuracy. The formulas are therefore a technical reference; their usefulness depends on instrument, timeframe, and testing choices.

Key ideas

• The indicator derives a pivot point from the daily high, low, and close, weighting the close twice.
• It calculates three support levels and three resistance levels from that pivot and the daily range.
• The document provides formula definitions but no trading rules or performance evidence.
• The levels require testing in the intended market and timeframe before being treated as useful signals.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.