How can pivot point charting be used to identify potential support and resistance levels in the cryptocurrency market?

1 answers

• Ashutosh Narayan ShuklaMay 09, 2024 · a year ago
  Pivot point charting is a widely used technique in the cryptocurrency market to identify potential support and resistance levels. Traders calculate pivot points based on the previous day's high, low, and close prices. These pivot points act as reference points for determining potential levels of support and resistance. When the price approaches a pivot point, it may bounce off or break through, indicating a potential support or resistance level. Traders can use this information to make informed trading decisions, such as setting profit targets or placing stop-loss orders. However, it is important to note that pivot point charting should not be used in isolation and should be combined with other technical analysis tools and indicators for more accurate predictions and risk management.
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