How are pivot points calculated in cryptocurrency trading?

3 answers

• Harry Michael Yarbro MikeMay 08, 2024 · a year ago
  Sure! Pivot points in cryptocurrency trading are calculated using a mathematical formula that takes into account the high, low, and closing prices of the previous trading session. The formula calculates several support and resistance levels, which are used by traders to identify potential price reversals or breakouts. These levels can help traders determine entry and exit points for their trades. It's important to note that pivot points are just one of many technical analysis tools used in cryptocurrency trading, and they should be used in conjunction with other indicators and strategies for more accurate predictions.
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• SylwiaNov 22, 2021 · 4 years ago
  Pivot points in cryptocurrency trading are calculated by taking the average of the high, low, and closing prices of the previous trading session. The pivot point itself represents a level of potential support or resistance. Above the pivot point, there are three resistance levels, while below the pivot point, there are three support levels. These levels are used by traders to identify potential price movements and make trading decisions. It's worth mentioning that pivot points are widely used in various financial markets, not just in cryptocurrency trading.
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• Muhammad Nadeem HassanDec 05, 2021 · 4 years ago
  In cryptocurrency trading, pivot points are calculated using a formula that takes into account the high, low, and closing prices of the previous trading session. The formula calculates the pivot point, as well as several support and resistance levels. These levels are considered important price levels and can act as potential areas of support or resistance. Traders use pivot points to identify key levels where price may reverse or break through. By analyzing the relationship between the current price and the pivot point, traders can make informed decisions about their trades. It's important to note that pivot points are just one tool among many that traders use to analyze the market and should not be relied upon solely for trading decisions.
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