The Dynamic Pivot Point indicator for MT4 is one of the best Pivot Point indicators I’ve ever used.
Why is it called dynamic?
From the indicator’s inputs menu, the Pivot Points time frame can be changed to whatever PP time frame you prefer to use.
It supports Pivot Points time frames from M1 up to the monthly chart.
For instance, Pivot Points generated on the H1 chart can be deployed to the M1 chart or any other chart of your preference.
How to use Pivot Points (Gold line on the chart):
- Price is considered to be positive above the Pivot Point.
- Price is considered to be negative below the Pivot Point.
Take profit levels for buy trades: resistance 1,2, and 3 (Aqua lines).
Take profit levels for sell trades: support 1, 2, and 3 (Magenta lines).
Feel free to experiment with the different indicator’s inputs settings to suit your needs and preferences.
Free Download
Download the “Dynamic Pivot.ex4” MT4 indicator
Indicator Chart (EUR/USD M5)
The EUR/USD 5-Minute chart below displays the Dynamic Pivot Point Metatrader 4 forex indicator in action.
Basic Trading Signals
Signals from the Dynamic Pivot Point MT4 forex indicator are easy to interpret and goes as follows:
Buy Signal: Go long the currency pair when its price closes above the Dynamic Pivot Point from below.
Place a stop loss below support or use your own preferred SL method.
Take profit at resistance levels 1,2 and 3.
Sell Signal: Go short the currency pair when its price closes below the Dynamic Pivot Point from above.
Place a stop loss above resistance or use your own preferred SL method.
Take profit at support levels 1,2 and 3.
Dynamic Pivot Point + XTC Forex Trend MT4 Day Trading Strategy
This day trading strategy combines the Dynamic Pivot Point MT4 Indicator and the XTC Forex Trend MT4 Indicator.
The Dynamic Pivot Point acts as a trend filter: when the price is above the pivot point, the market is considered bullish, while below the pivot point, it is bearish.
The XTC Trend Indicator shows blue bars for buy signals and red bars for sell signals, providing precise entry points within the trend.
This combination allows traders to take trades in the direction of the prevailing trend while using the XTC bars to enter at high-probability points.
It works best on M15 and M30 charts for day trading, capturing intraday swings without holding positions overnight.
This strategy is suitable for traders looking for structured, low-stress intraday setups.
Buy Entry Rules
- Price must be above the Dynamic Pivot Point, confirming a bullish trend.
- XTC Trend Indicator must show a blue bar, signaling a buy entry.
- Enter long at the close of the blue bar candle.
- Place stop loss below the nearest swing low or just under the pivot point.
- Take profit options:
- Fixed target: 25–40 pips on M15, 40–70 pips on M30.
- Trend exit: close when price closes below the pivot point or the XTC bar turns red.
Sell Entry Rules
- Price must be below the Dynamic Pivot Point, confirming a bearish trend.
- XTC Trend Indicator must show a red bar, signaling a sell entry.
- Enter short at the close of the red bar candle.
- Place a stop loss above the nearest swing high or just above the pivot point.
- Take profit options:
- Fixed target: 25–40 pips on M15, 40–70 pips on M30.
- Trend exit: close when price closes above the pivot point or the XTC bar turns blue.
Advantages
- Pivot point filter ensures trades follow the main intraday trend.
- XTC bars provide clear, timely entry points within the trend.
- Flexible take-profit methods: fixed target or trend-based exit.
- Works well on liquid currency pairs during high-volume sessions.
- Easy to implement and visually intuitive.
Drawbacks
- Pivot points can lag during sudden volatility spikes.
- Small profit targets may be affected by broker spreads.
- Requires monitoring of both price relative to pivot and XTC bar changes.
Example Case Study 1: EUR/USD on M15
During the London session, EUR/USD was trading above the Dynamic Pivot Point, signaling a bullish trend.
Shortly after, the XTC Trend Indicator printed a blue bar.
A long position was taken at the close of the bar with a stop loss below the recent swing low.
Price moved steadily upward, reaching a 30-pip target.
The trend remained intact, and the position could also have been held until a color change on the XTC bars for extended gains.
Example Case Study 2: GBP/JPY on M30
In the New York session, GBP/JPY dropped below the pivot point, indicating a bearish trend.
The XTC Trend Indicator then showed a red bar.
A short trade was entered at the candle close with a stop above the previous swing high.
The price fell steadily, hitting a 50-pip take profit.
The trade could also have been managed using the trend exit rule, closing the position if the price moved back above the pivot point or the XTC bar turned blue.
Strategy Tips
- Focus on liquid pairs such as EUR/USD, GBP/JPY, USD/JPY, and AUD/USD.
- Only take trades when both the pivot point and XTC bar confirm the direction.
- Avoid trading during low liquidity periods to reduce false signals.
- Adjust stop-loss distances according to volatility to avoid early stop-outs.
- Use trend-based exits during strong trending days to maximize profits.
- Backtest the strategy across multiple sessions to identify the best-performing pairs.
Download Now
Download the “Dynamic Pivot.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (Pivot Time Frame) Width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, Daily, Weekly, Monthly
Type: Pivot Point
