How can the pivot point indicator help traders predict support and resistance levels in the cryptocurrency market?

1 answers

• Jan 12, 2022 · 3 years ago
  The pivot point indicator is a widely used tool in the cryptocurrency market, and for good reason. It helps traders identify important support and resistance levels, which are crucial for making profitable trading decisions. The indicator works by calculating the average of the previous session's high, low, and closing prices, and then using this average as a reference point for determining potential levels where the price may reverse. When the price approaches a pivot point, it is likely to encounter some resistance or support, depending on the direction of the trend. This information can be used by traders to set their entry and exit points, as well as to manage their risk by placing stop-loss orders. Overall, the pivot point indicator is a valuable tool for traders looking to predict support and resistance levels in the cryptocurrency market.
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