What is the process for calculating pivot points in the context of digital currencies?

1 answers

• Dec 18, 2021 · 3 years ago
  When it comes to calculating pivot points for digital currencies, the process is quite similar to other financial instruments. Traders gather the high, low, and closing prices for a specific time period, such as a day or a week. They then use these values to calculate the pivot point, which is the average of the high, low, and closing prices. From there, they can calculate the support and resistance levels by using the pivot point. Support levels are calculated by subtracting the previous day's high and low prices from the pivot point, while resistance levels are calculated by adding the previous day's high and low prices to the pivot point. These levels can be used by traders to identify potential areas of buying and selling pressure in the market.
  759380