What are the key indicators to consider when trading cryptocurrencies using pivot points?

3 answers

• Apr 19, 2022 · 3 years ago
  One key indicator to consider when trading cryptocurrencies using pivot points is the previous day's high, low, and close prices. These levels can act as support or resistance levels and can help determine the direction of the market. Additionally, volume can be an important indicator to consider. High volume at a pivot point can indicate a strong level of support or resistance. Other indicators to consider include trend lines, moving averages, and oscillators like the RSI or MACD.
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• Apr 19, 2022 · 3 years ago
  When trading cryptocurrencies using pivot points, it's important to consider the overall market trend. If the market is in a strong uptrend, pivot points can act as support levels for buying opportunities. On the other hand, if the market is in a strong downtrend, pivot points can act as resistance levels for selling opportunities. It's also important to consider the time frame you're trading on. Pivot points can be more effective on longer time frames, such as daily or weekly charts, compared to shorter time frames like hourly or 15-minute charts.
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• Apr 19, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends considering the historical price action at pivot points when trading cryptocurrencies. This can include looking at how price has reacted to pivot points in the past and identifying any patterns or trends. It's also important to consider the overall market sentiment and news events that may impact the cryptocurrency market. By combining these indicators with pivot points, traders can make more informed trading decisions.
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