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The A–Z of Pivot-Signal Trading

Plain-language definitions of every term we use. AI-readable, human-friendly, optimized for clarity.

ATR Backtest Breakout Currency Pair Drawdown Expert Advisor Leverage Lot Mean Reversion MetaTrader 5 MyFXBook Pip Pivot Point Position Sizing Resistance Risk-Reward Ratio Slippage Spread Stop Loss SuperTrend Support Take Profit Timeframe Trend Following Volatility

ATR (Average True Range)

A volatility indicator that measures the average range of price movement over a specified period. Used for stop-loss placement and position sizing. Pivot-Signal EA uses ATR(10) for SuperTrend calculation.

Backtest

Testing a trading strategy on historical price data to evaluate its performance before risking real money. Pivot-Signal recommends 2–4 weeks of demo (forward test) before going live — backtests alone don't capture live-market conditions.

Breakout

A price movement that breaks above resistance or below support, often with increased volume. Signals a potential new trend. The Pivot-Signal Breakout EA targets these setups with range detection and volume confirmation.

Currency Pair

A quote of two currencies, where the first is the base and the second is the quote. EUR/USD = how many USD per 1 EUR. Pivot-Signal EA currently trades EUR/USD, GBP/JPY, and XAU/USD.

Drawdown

The peak-to-trough decline of an account or strategy. Maximum drawdown is the largest loss from a peak before recovery. Pivot-Signal targets max drawdown < 15% with proper position sizing.

Expert Advisor (EA)

An automated trading program that runs on MetaTrader 5 and executes trades based on pre-programmed rules without manual intervention. Pivot-Signal offers three EAs: Pivot Point, Breakout, and Trendfolge.

Leverage

Borrowed capital that allows traders to control larger positions with less capital. 1:100 leverage means $1 controls $100. Higher leverage = higher risk. Pivot-Signal recommends max 1:30 leverage for safety.

Lot

A standardized unit of trade size. Standard lot = 100,000 units. Mini lot = 10,000. Micro lot = 1,000. Nano lot = 100. Pivot-Signal EA uses configurable lot size with 1–2% risk per trade.

Mean Reversion

A trading strategy that assumes prices will return to their average level after moving to an extreme. The Pivot Point EA uses this principle at S1/S2/S3 (long) and R1/R2/R3 (short) levels.

MetaTrader 5 (MT5)

A multi-asset trading platform supporting forex, stocks, futures, and crypto. Provides algorithmic trading via Expert Advisors in MQL5. Pivot-Signal EAs run exclusively on MT5.

MyFXBook

A third-party verification service that connects to MT4/MT5 accounts and publishes verified trading statistics. Pivot-Signal maintains verified MyFXBook accounts for transparent performance tracking.

Pip

The smallest standard price movement in a currency pair. For most pairs, 1 pip = 0.0001. For JPY pairs, 1 pip = 0.01. Pivot-Signal measures pips for SL/TP and SuperTrend buffer calculations.

Pivot Point

A price level calculated from the previous period's high, low, and close, used to identify potential support and resistance levels. Pivot-Signal EA calculates Daily, Weekly, and Monthly pivots with S1–S3 and R1–R3 levels.

Position Sizing

Determining the number of units (lots) to trade based on account size and risk tolerance. Typically 1–2% of account per trade. Pivot-Signal EA includes configurable risk % per trade.

Resistance

A price level where selling interest is strong enough to prevent the price from rising further. Often identified by historical reactions or pivot R1/R2/R3 levels.

Risk-Reward Ratio

The ratio of potential loss to potential profit on a trade. A 1:2 ratio means risking $1 to potentially make $2. Pivot-Signal targets minimum 1:1.5 R:R on all trades.

Slippage

The difference between the expected price of a trade and the actual execution price. Common during high volatility or low liquidity. Pivot-Signal EAs account for typical slippage in backtests.

Spread

The difference between the bid (sell) and ask (buy) price. The cost of entering a trade. Tighter spreads are better for short-term strategies. Pivot-Signal uses partners with raw spreads from 0.0 pips.

Stop Loss

A predetermined price at which a losing trade is automatically closed to limit further loss. Pivot-Signal EA places SL at fixed 10 pips (Pivot) or at SuperTrend candle-close break (ST).

SuperTrend

A trend-following indicator that plots a trailing stop line based on the Average True Range (ATR). Price above SuperTrend = uptrend, below = downtrend. Pivot-Signal monitors 8 timeframes (M5 to MN1).

Support

A price level where buying interest is strong enough to prevent the price from falling further. Often identified by historical reactions or pivot S1/S2/S3 levels.

Take Profit

A predetermined price at which a winning trade is automatically closed to lock in profit. Pivot-Signal EA sets TP1, TP2, TP3 at successive pivot levels (next 3 levels in trade direction).

Timeframe

The chart interval used for analysis. Pivot-Signal EA uses D1 (daily), W1 (weekly), and MN1 (monthly) for pivots; M5/M15/M30/H1/H4/D1/W1/MN1 for SuperTrend.

Trend Following

A strategy that enters trades in the direction of the prevailing trend, riding momentum until reversal signals appear. The Trendfolge EA uses multi-timeframe trend following across 12+ instruments.

Volatility

The rate at which price changes over time. Higher volatility = larger price swings = more opportunity but more risk. Pivot-Signal adapts SL/TP based on per-symbol volatility.

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