What Are Pivot Points —and How to Crypto Trade with Them

We've all got to start somewhere, and familiarizing ourselves with different technical analysis types in crypto is no different. One thing is for sure: Novice traders often struggle to find a road map to navigate the crypto markets. Active crypto enthusiasts will often rack up losses, only to realize all they lack is a sense about market direction. Well, pivot points come in handy for deciphering these challenges, mainly for entering and exiting positions.

Pivot points refer to a technical analysis tool that provides more apparent price levels as the turning point, resistance and supports over different periods. The pivot points are based on the price action of the previous day's trading. 

In technical analysis, pivot points help determine a sensitive point on the price chart, a crossing that might cause a shift in market sentiment. The pivot point is based on the previous high, low and close prices. The method also provides critical levels of support and resistance in the price action surrounding the pivot point. Ultimately, you can easily use the pivot points to find reliable buy and sell signals, and to determine exit points along with adequate stop-loss placement.  

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