Monthly Pivot Script
Learn to trade with the best automatic Monthly Pivot Script for MT4. Shows long-term support/resistance levels.
Description
This is an automatic price-level script specially developed for MT4 platforms. It plots monthly pivot lines on MTF charts showing long-term support/resistance levels.
Price level analysis is a “must-do” job for technical traders. After getting a trend confirmation, you’ll need to know where the supports and resistances are lying to assess possible trade entry points. Moreover, the S/R levels help identify counter-trend trading positions too.
This guide will explain how to apply this script on MT4 to explore key support-resistance levels.
How to Determine Buy-Sell Levels Using the Monthly Pivot Script for MT4
The Monthly Pivot levels work as strong support/resistance on forex and stock charts. It is evident that the price mostly tends to reverse or plot bullish/bearish breakout moves around these levels.
As shown in the above GBPUSD (4-hourly) chart, the price was rejected twice in a row while trying to break above the monthly pivot line. The failed attempt to exceed the resistance resulted in a double top pattern, suggesting a bearish trend reversal.
Eventually, the price broke below the consolidation range and headed for an extensive bearish move. If the price managed to break the resistance and is treated at the same level as support, we’d consider it a bullish price breakout.
Since the monthly pivot only highlights long-term support/resistance levels, it might offer only a few price actions around the potential event areas.
Conclusion
The Monthly Pivot is one of the simplest price-level scripts you may have ever experienced in MT4. You can use its pivot lines as support-resistance levels for both day and intraday trading. Please note that the script only outlines key price levels and doesn’t serve any trade signals. However, combining price action patterns with monthly pivots can guide you through solid buy/sell entry points.