How can I use pivot points to analyze cryptocurrency price movements and make profitable trades?

1 answers

• Sarwon Jung KunwarAug 21, 2023 · 2 years ago
  Of course! Pivot points can be a useful tool for analyzing cryptocurrency price movements and making profitable trades. They can help you identify key levels of support and resistance, which can be used to determine potential entry and exit points for your trades. To calculate pivot points, you need to know the high, low, and closing prices from the previous trading session. Once you have these values, you can calculate the pivot point by adding the high, low, and closing prices together and dividing by three. The support and resistance levels can then be calculated by subtracting and adding the previous day's high and low prices from the pivot point, respectively. By analyzing the price action around these levels, you can gain insights into the market sentiment and make more informed trading decisions. However, it's important to remember that pivot points are not foolproof and should be used in conjunction with other analysis techniques and risk management strategies.
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