What are the best pivot points trading strategies for cryptocurrency?

3 answers

• Dec 19, 2021 · 3 years ago
  Sure! One effective pivot points trading strategy for cryptocurrency is to use the daily pivot points as support and resistance levels. When the price of a cryptocurrency is above the pivot point, it is considered bullish, and when it is below the pivot point, it is considered bearish. Traders can enter long positions when the price breaks above the resistance level and set a stop loss just below the pivot point. Conversely, they can enter short positions when the price breaks below the support level and set a stop loss just above the pivot point. This strategy allows traders to take advantage of price reversals and maximize their profits.
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• Dec 19, 2021 · 3 years ago
  Another pivot points trading strategy for cryptocurrency is to use multiple time frames. Traders can calculate pivot points for different time frames, such as daily, weekly, and monthly, and look for confluence zones where multiple pivot points align. These confluence zones act as strong support or resistance levels and can provide high-probability trading opportunities. By combining pivot points from different time frames, traders can get a more comprehensive view of the market and make more informed trading decisions.
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• Dec 19, 2021 · 3 years ago
  At BYDFi, we recommend using pivot points in conjunction with other technical indicators to confirm trading signals. For example, traders can use pivot points along with moving averages or trend lines to identify potential entry and exit points. By considering multiple indicators, traders can reduce the risk of false signals and increase the accuracy of their trades. Remember to always do your own research and practice proper risk management when trading cryptocurrencies.
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