How can I calculate pivot points for cryptocurrency trading?

3 answers

• Dec 18, 2021 · 3 years ago
  Sure! Calculating pivot points for cryptocurrency trading can be a useful tool for identifying potential support and resistance levels. Here's a step-by-step guide: 1. Start by gathering the high, low, and closing prices for a specific time period, such as a day or a week. 2. Calculate the pivot point (PP) by adding the high, low, and closing prices together, and then dividing the sum by 3. 3. Calculate the first resistance level (R1) by multiplying the pivot point by 2 and subtracting the low price. 4. Calculate the first support level (S1) by multiplying the pivot point by 2 and subtracting the high price. 5. Calculate the second resistance level (R2) by adding the pivot point to the difference between the high and low prices. 6. Calculate the second support level (S2) by subtracting the difference between the high and low prices from the pivot point. 7. Finally, calculate the third resistance level (R3) by adding the difference between the high and low prices to the pivot point, and calculate the third support level (S3) by subtracting the difference between the high and low prices from the pivot point. Remember, pivot points are just one tool among many in technical analysis, so it's important to use them in conjunction with other indicators and analysis techniques.
  1292646
• Dec 18, 2021 · 3 years ago
  Calculating pivot points for cryptocurrency trading is a great way to identify potential levels of support and resistance. Here's a simple step-by-step guide: 1. Gather the high, low, and closing prices for a specific time period. 2. Calculate the pivot point by adding the high, low, and closing prices together, and then dividing the sum by 3. 3. Calculate the first resistance level by multiplying the pivot point by 2 and subtracting the low price. 4. Calculate the first support level by multiplying the pivot point by 2 and subtracting the high price. 5. Calculate the second resistance level by adding the pivot point to the difference between the high and low prices. 6. Calculate the second support level by subtracting the difference between the high and low prices from the pivot point. 7. Calculate the third resistance level by adding the difference between the high and low prices to the pivot point, and calculate the third support level by subtracting the difference between the high and low prices from the pivot point. Remember, pivot points are just one tool in your trading arsenal, so use them in conjunction with other indicators and analysis techniques for the best results.
  1199400
• Dec 18, 2021 · 3 years ago
  Calculating pivot points for cryptocurrency trading is a fundamental technique used by many traders to identify potential support and resistance levels. Here's a step-by-step guide: 1. Collect the high, low, and closing prices for a specific time period. 2. Calculate the pivot point by adding the high, low, and closing prices together, and then dividing the sum by 3. 3. Calculate the first resistance level by multiplying the pivot point by 2 and subtracting the low price. 4. Calculate the first support level by multiplying the pivot point by 2 and subtracting the high price. 5. Calculate the second resistance level by adding the pivot point to the difference between the high and low prices. 6. Calculate the second support level by subtracting the difference between the high and low prices from the pivot point. 7. Calculate the third resistance level by adding the difference between the high and low prices to the pivot point, and calculate the third support level by subtracting the difference between the high and low prices from the pivot point. Remember, pivot points are just one tool in your trading strategy, so make sure to combine them with other technical indicators and analysis methods for better decision-making.
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