Pivot levels in binary options (support levels) are one of the technical analysis tools that are used in the same way as support and resistance levels . That is, in both cases, traders determine zones upon reaching which the price chart should turn in the opposite direction.

Pivot Points are built according to certain formulas that take into account indicators taken over the past period. This means that the tool in question is used to determine zones in the near future based on data taken from the past. That is, using the pivot levels indicator , the trader expects that after the completion of a given time interval, the chart will reach the desired values.

Content:

How pivot levels work in binary options

You can understand the principle of operation of Pivot in binary options trading if you find out on what formulas this tool works. Several types of calculations are used to determine support and resistance lines. This is due to the fact that the first formula, on the basis of which the pivot is calculated, was later supplemented and revised by analysts. As a result, several options for constructing zones appeared, which is explained by the difference in opinions among traders who modified the formulas for calculations. Basic pivot points for MT4 look like this:

pivot points mt4 indicator

Despite the wide variety of types of pivot levels for MT4, it is recommended to use the following for trading binary options:

  1. Traditional . They are considered more popular among traders working with currency pairs .
  2. Classic . This option differs from the previous one by minor changes in the calculation formula.
  3. By Woodie . When calculating future boundaries, users give more weight to the closing price.
  4. According to DeMark . This pivot calculation appeared at the beginning of 2010 to determine the direction of price movement during that period.
  5. According to Fibonacci . The formula is calculated using price correction zones, which are determined by Fibonacci numbers.
  6. According to the Camarilla . Support points are calculated using a method similar to the classical one.

To understand how pivot points are determined and how to trade using this instrument, it is necessary to consider the features of the formulas used to calculate support and resistance lines.

Traditional calculation of pivot levels

This option is considered the easiest to build. In this case, to determine the moments of a possible reversal, values ​​​​obtained for previous periods (for yesterday, a week, a month, and so on) are used. Three parameters are used in the calculations:

  • High, or the maximum price reached for the selected timeframe ;
  • Low, or minimum price;
  • Close, or closing price.

These values ​​are added and divided by “3” P = (Close + High + Low) / 3. Additionally, it is necessary to calculate the three starting points of the support lines (R – Resistance) and resistance (S – Support):

  • R1 = 2 * P – Low;
  • S1 = 2 * P – High;
  • R2 = P + (R1 – S1);
  • S2 = P – (R1 – S1);
  • R3 = High + 2 * (P – Low);
  • S3 = Low – 2 * (High – P).

After calculations, the results obtained will be reflected on the graph in the form of seven lines:

  1. S1;
  2. S2;
  3. S3;
  4. Pivot Point;
  5. R1;
  6. R2;
  7. R3.

Traditional calculation

Calculation of pivot levels according to DeMark

This calculation has an important feature that determines future results. When making calculations , the trend is taken into account: bullish or bearish . That is, the direction of the asset is first determined, after which the calculations are performed:

  1. if the opening price is greater than the closing price, then P = High + 2 * (Low + Close);
  2. if less, then P = 2 * High + Low + Close;
  3. if they match, then P = High + Low + 2 * Close.

In this case, R1 = P / 2 – Low, S1 = P / 2 + High and we get three lines:

Calculation according to DeMark

Calculation of pivot levels according to Woody

In this case, the value calculated using closing prices takes on greater weight. To determine the reference points, the following calculations are used:

  • P = (2 * Close + High + Low) / 4;
  • R1 = 2 * P – Low;
  • S1 = 2 * P – High;
  • R2 = P + High – Low;
  • S2 = P – High + Low.

When plotting Pivot Points, seven horizontal lines should appear:

Woody's calculation

Calculation of pivot levels for the Camarilla

Pivot points calculated using this formula give eight lines of support and resistance. This option is more often used in Forex trading. Traders use the resulting price zones to set take profits and stop losses. To calculate these points, you need to use the following formulas:

  • R4 = (High – Low) * 1.1 / 2 + Close;
  • S4 = Close – (High – Low) * 1.1 / 2;
  • R3 = (High – Low) * 1.1 / 4 + Close;
  • S3 = Close – (High – Low) * 1.1 / 4;
  • R2 = (High – Low) * 1.1 / 6 + Close;
  • S2 = Close – (High – Low) * 1.1 / 6;
  • R1 = (High – Low) * 1.1 / 12 + Close;
  • S1 = Close – (High – Low) * 1.1 / 12.

Calculation according to the Camarilla

Pivot levels calculator (online calculation)

To simplify the construction of pivot lines, indicators have been created that can be downloaded for various trading terminals, including MetaTrader 4 . Also, to determine the reference points, you can use the online pivot level calculator from Investing, which will help calculate all zones without using formulas:

Calculator for pivot points

This pivot level calculator contains information with constructions on:

  1. Classic;
  2. Camarilla;
  3. Fibonacci;
  4. Woody;
  5. DeMark.

Also in the table you can view the parameters S1-Sn, R1-Rn and assets for which points are displayed. There is a choice:

  1. Forex;
  2. Indexes;
  3. Stock;
  4. Futures;
  5. Goods.

In addition, the calculator has a time frame selection function. Depending on the selected interval, the parameters of the pivot points change, since the period for which the indicators are taken for calculations changes:

timeframes in the calculator

Pivot levels: indicator from Trading View

Above, when explaining the formulas, we used the TradingView platform , on which you can build Pivot Points using the built-in indicator. This can also be done on a live chart for binary options . To add an indicator, click on the “Indicators” button and enter “pivot points” or “pivot points” into the search bar if you have the English version. From those found, select “Standard Pivot Points” or “Pivot Points Traditional” for the English version:

pivot points indicator from Trading View

Pivot Points will be immediately plotted automatically on the chart. Traders have a choice of all the previously discussed types of Pivot Points, which can be selected in the indicator settings. Additionally, each of the Pivot Points can be customized by making changes to the construction types, display for the past period, time frame, color and type of lines:

pivot settings

By default, TradingView has automatic plotting parameters for the timeframe (Pivots Timeframe). If desired, you can choose any of the time frames if, for example, you need lines for five or fifteen minutes.

Pivot levels indicator for MT4: Pivot Points AiO

The MetaTrader 4 terminal also allows you to use indicators that build exactly the same Pivot Points. There are a lot of indicators for pivot levels, but not all of them allow you to build lines according to the formulas we described. One of the indicators that allows you to do this is Pivot Points AiO:

pivot points aio indicator

The indicator can be customized using the Fibonacci, Camarilla, Woody and standard formulas, but there is no DeMark formula for calculation:

pivot points aio indicator settings

You can also customize timeframes, level depth, appearance and color scheme. When setting up the indicator, you should take into account that the calculation procedure changes depending on the selected timeframe. In particular, the period for which data is taken for calculations changes. Therefore, for most binary options strategies that are used intraday, it is worth selecting the “Hourly” (hourly) timeframe in the settings:

pivot points aio indicator lines

If you leave "Daily" (daily), then the Pivot points will be far from each other. But such a period for calculation, on the contrary, is suitable for those who trade on a time frame of H1 and higher.

You can download the pivot levels indicator at the end of the article.

Pivot levels: how to trade

Pivot levels are used to determine support and resistance zones (or supply and demand). In both cases, the tool helps to determine the area on the chart, upon reaching which the price can change the current direction to the opposite. Pivot Points are used as a line, the intersection of which gives a strong signal for a reversal.

The above screenshot clearly shows the effectiveness of this approach. Quotes for the selected asset react well to established support and resistance zones. But in case of a breakout, the price movement strengthens and the trend goes in the same direction. That is, in such situations, transactions are opened following the direction of the market, and the previous lines become “mirror” (support becomes resistance, and vice versa):

reversals according to the indicator

Pivot Points can also be used as supply and demand zones. To do this, you need to combine two lines into one zone:

indicator zones

The option using zones is only suitable for experienced binary options traders, since they are difficult to determine and you need to have an understanding of how each asset behaves. For beginners, it's best to just use Pivot lines.

Not everyone will be able to use levels alone, since very often the price makes false breakouts or even breaks through the level, as if it does not exist. Therefore, for more effective trading, it is worth using additional indicators for binary options. In our case, we use the Stochastic Oscillator indicator together with Pivot Points.

The buying rules for Call options are as follows:

  1. The price must approach the line from bottom to top and go beyond it or touch the level, after which it begins to move down and consolidate behind the level (the candle must close below the level).
  2. Stochastic should enter the overbought zone and begin to exit it.

For Put options:

  1. The price must approach the line from top to bottom and go beyond it or touch the level, after which it begins to move upward and consolidate behind the level (the candle must close above the level).
  2. Stochastic should enter the oversold zone and begin to exit it.

Expiration in both cases should be five candles.

You can also use breakouts of Pivot lines to trade binary options, but in this case you also need to use an additional filter that will help determine the accuracy of a potential breakout. It is worth noting that the breakout strategy is more complex and very often the signals in it are false, so it is better to focus on rebounds from Pivot Points.

Opening a Call Option

In the example below, the price went beyond the level from top to bottom and settled above it. At this moment, Stochastic began to leave the oversold zone, which gave a signal to buy a Call option:

buying a call option using the pivot points aio indicator

Opening a Put option

The opposite situation is where the price went beyond the level from bottom to top, after which it dropped and consolidated below it. Stochastic began to leave the overbought zone, which gave a signal to buy a Put option:

buying a put option using the pivot points aio indicator

Conclusion

Trading at pivot levels is carried out on the principle of trading from support and resistance lines or supply and demand zones. However, this tool is not recommended to be used alone, since Pivot Points can often show a false breakout, which cannot be determined in advance. Also, pivot levels are not able to replace standard support and resistance lines, since they are constructed differently. They can be used together for greater efficiency.

Before each transaction, it is recommended to conduct a full analysis on history and on a demo account , and do not forget about the rules of money management and risk management , as well as trade only through a trusted broker, which can be found in our rating of binary options brokers .

Download the Pivot Points AiO indicator

Download

Can't figure out how this strategy or indicator works? Write about it in the comments to this article, and also subscribe to our YouTube channel WinOptionSignals , where we will definitely answer all your questions in the video.

PO

See also:

Psychology in trading - what does a beginner need to know?

How to make money on binary options

Pros and cons of trading binary options

Do you make money on binary options?

Estimate:
(5 / 5)
Your vote has been counted
Comments

To leave a comment, you must register or log in to your account.

Option Bull
Option Bull
Что-то все молчат. В принципе в индюке нет ничего сложного
Артур, как раз таки индикатор довольно сложный, по крайней мере для новичков, которые могут не разобраться во всех этих формулах и зонах. Тем более в статье прямо об этом и говорится.
Option Bull, тю, но ведь дальше в самой же статье написано, что не обязательно самому считать уровни по формулам. Можно ведь на инвестинге воспользоваться специальным калькулятором уровней Пивот, причем там также можно выбрать нужный временной интервал, так что не вижу особой проблемы)
Руслан, ок, допустим, но это все равно не знакомые многим уровни поддержки/сопротивления. Они ведут себя по-разному при разных активах и т.д. + здесь нужно фильтровать сигналы и знать, какой дополнительный индикатор для этого лучше подойдет, так как этот индюк нередко дает ложные сигналы на пробитие.
08 November 2023
Answer
Руслан
Руслан
Что-то все молчат. В принципе в индюке нет ничего сложного
Артур, как раз таки индикатор довольно сложный, по крайней мере для новичков, которые могут не разобраться во всех этих формулах и зонах. Тем более в статье прямо об этом и говорится.
Option Bull, тю, но ведь дальше в самой же статье написано, что не обязательно самому считать уровни по формулам. Можно ведь на инвестинге воспользоваться специальным калькулятором уровней Пивот, причем там также можно выбрать нужный временной интервал, так что не вижу особой проблемы)
08 November 2023
Answer
Option Bull
Option Bull
Что-то все молчат. В принципе в индюке нет ничего сложного
Артур, как раз таки индикатор довольно сложный, по крайней мере для новичков, которые могут не разобраться во всех этих формулах и зонах. Тем более в статье прямо об этом и говорится.
08 November 2023
Answer
Артур
Артур
Что-то все молчат. В принципе в индюке нет ничего сложного
14 September 2023
Answer
Богдан
Богдан
Кто-то тестил? результат хоть какой-то есть?
tirant, Возьмите и тестируйте. Потом здесь напишите как он...
20 June 2023
Answer
Богдан
Богдан
С февраля молчание. Людиии, кто-нибудь тестил? Как результаты?
27 April 2023
Answer
tirant
tirant
Кто-то тестил? результат хоть какой-то есть?
22 February 2023
Answer
Вячеслав
Вячеслав
спасибо за уровни пивот для мт4. поделитесь только кто какую формулу расчета использует? а то не ясно какая эфективнее..........
бери класичесскую или трацдиционную не ошибешься остальыне то уже замороченные и не нужные.
Михаил Петров, да классика есть класика. Но я обратил внимание на Fxaccurate Larna MT4. Тестировал на МТ4 и дает хорошие результативность... Правда ждать нужно, поскольку сигналы выдаёт редко, но точно... Рекомендую попробовать, благо есть варинат тестирования бесплатно.
Алексей, и что какие результаты? пробовал на реальном счету?
06 June 2022
Answer
Алексей
Алексей
спасибо за уровни пивот для мт4. поделитесь только кто какую формулу расчета использует? а то не ясно какая эфективнее..........
бери класичесскую или трацдиционную не ошибешься остальыне то уже замороченные и не нужные.
Михаил Петров, да классика есть класика. Но я обратил внимание на Fxaccurate Larna MT4. Тестировал на МТ4 и дает хорошие результативность... Правда ждать нужно, поскольку сигналы выдаёт редко, но точно... Рекомендую попробовать, благо есть варинат тестирования бесплатно.
25 May 2022
Answer
Михаил Петров
Михаил Петров
спасибо за уровни пивот для мт4. поделитесь только кто какую формулу расчета использует? а то не ясно какая эфективнее..........
бери класичесскую или трацдиционную не ошибешься остальыне то уже замороченные и не нужные.
21 March 2022
Answer
Федор
pivot в трейдинге бинарными опционами можно использовать и как обычные уровни, но на пробой точно сказали вы сложно и понять что будет пробой почти не реально
21 March 2022
Answer
Михаил Петров
Михаил Петров
pivot в трейдинге бинарными опционами можно использовать и как обычные уровни, но на пробой точно сказали вы сложно и понять что будет пробой почти не реально
можно понять если использовать еще какой-то сигнальный индикатор но все равно именно отбой точнее будет и проще. пробой может и не пойти далеко тем более...
21 March 2022
Answer
Егор
спасибо за уровни пивот для мт4. поделитесь только кто какую формулу расчета использует? а то не ясно какая эфективнее..........
21 March 2022
Answer
Our website uses cookies and similar technologies to ensure that you get the best experience by providing personalized information, remembering marketing and product preferences, and helping you get the right information.
Quick registration!

Thank you for registering on our website. Now you have access to free distribution of signals, strategies and indicators from our website, and you can also leave a comment under any article on our website

An email has been sent to you with a link to confirm your registration and activate your account.

* If you use GMAIL mail for registration, then the letter will most likely end up in spam , check the spam folder and click the NOT SPAM button to receive notifications in the future or use another mail for registration.

** if within 5 minutes the letter has not arrived at your other email address, also check your spam folder or write to us in support support@winoptionsignals.com

If you have any questions, you can contact our support team:

You can also read our FAQ

Happy trading with us!