Daily Pivot Points Indicator

The Daily Pivot Points Indicator MT5 is one of the most widely used technical tools for day traders, swing traders, and market analysts. Pivot levels are calculated using the previous day’s open, high, low, and close, giving traders clear insight into likely support, resistance, and potential trend direction for the next trading session.

This MT5 pivot indicator automatically draws the daily pivot line, three resistance levels (R1, R2, R3), three support levels (S1, S2, S3), plus midlines between each major level. These midlines help traders recognize price reactions more precisely and identify trend strength, retracements, and breakout conditions.
The simplicity and accuracy of pivot points make this indicator suitable for both beginners and advanced forex traders.

How the Daily Pivot Points Indicator MT5 Works

Once applied to the chart, the indicator immediately calculates pivot levels based on the formula:

Pivot Point (PP) = (High + Low + Close) / 3

Resistance & Support levels are then derived using well-known pivot formulas.

This creates a structured map of the market for the current day. The indicator displays:

Pivot Point (PP) – central balance line

Resistance levels (R1, R2, R3) – potential reversal or breakout zones

Support levels (S1, S2, S3) – likely bounce or breakdown zones

Midlines – dotted levels between S/R for more refined trading

Because these levels are calculated off the daily values, they remain effective across all timeframes, from the 1-minute chart to the monthly chart.

Daily Pivot Points Indicator MT5 Trading Setup

Understanding the Color Coding

As shown in the EURUSD H1 example:

Pivot line = Blue

Support levels (S1–S3) = Green

Resistance levels (R1–R3) = Red

Midlines = Dotted lines between each level

This makes it easy to see where price is currently trading relative to trend-defining levels.

BUY Setup – Bullish Bias

A bullish condition is established when:

The price is above the pivot point (PP)

Price breaks above the first resistance level (R1)

This signals strong buying pressure. Traders can then:

Enter BUY above R1

Place stop loss below the pivot or below recent swing low

Target R2 or R3, or exit at the next key level

Pivot points act as highly reliable profit targets since price often reacts sharply at each level.

SELL Setup – Bearish Bias

A bearish condition appears when:

The price is below the pivot level

Price breaks below the first support level (S1)

This suggests growing selling pressure. In this setup:

Enter SELL under S1

Place SL above the pivot or above the last swing high

Target S2 or S3, depending on market volatility

These setups are especially effective in strong trending markets.

Why Pivot Points Work So Well

Pivot points remain effective because they are widely watched by:

Retail traders

Institutional desks

Algorithmic trading systems

When many traders monitor the same levels, markets often react predictably. They serve as:

Trend filters – price above PP = bullish bias

Breakout zones – breaking R1/S1 shows momentum

Mean-reversion zones – bouncing between levels

Risk-reward planning tools – SL and TP are clearly defined

Benefits of the Daily Pivot Points Indicator MT5

Automatically calculates daily pivot levels

Works on all timeframes

Provides clear support, resistance, and midlines

Perfect for intraday scalping and day-trading

Helps structure risk-reward ratios

Easy to read and beginner-friendly

Conclusion

The Daily Pivot Points Indicator MT5 offers traders a powerful way to understand market structure, identify key levels, and trade intraday trends or reversals with confidence. Midlines add even more precision, making entries and exits more accurate.
Download the indicator for free at IndicatorForest.com and start mastering forex with pivot-based analysis today.