<h1><center>PIVOT POINTS</center></h1>
<h2>1-Discuss your understanding of Pivot Points. (Title For this topic will be Pivot Points)</h2>
Pivot points are, of course, a tool that can be used to try to forecast the price movements of an asset and to give an idea of the trend that the price is making. Traders use previous trades and look at highs, lows, opening and closing prices to try to establish the support and resistance levels for the day. Having an idea of what the low and highs of the current day could be gives us an edge in our trades.
So again, pivot points, like all other trading tools and strategies are just a guidance or an indicator if you will, by no means are they to be taken as a proven way of making a profit, still they do let us look at the market for a certain crypto (which is the market we are looking into) and help us to reach a conclusion as to what path we should take with our investment.
<h2>2-Details about Pivot Point Levels.</h2>
There are seven Pivot Point Levels which are the following:
<table>
<thead>
<tr><th><center>Pivot Levels</center></th><th><center>Details.</center></th></tr>
</thead>
<tbody>
<tr><td><center>Main Pivot Level (PP)</center></td><td>This is the middle and main pivot point on the chart.</td></tr>
<tr><td><center>Support 1 (S1) </center></td><td>This is the first pivot level below the main pivot point.</td></tr>
<tr><td><center>Support 2 (S2)</center></td><td>This is the second pivot level below the main pivot point and below S1.</td></tr>
<tr><td><center>Support 3 (S3)</center></td><td>This is the third pivot level below the main pivot and below S2.</td></tr>
<tr><td><center>Resistance 1 (R1)</center></td><td>This is the first pivot level above the main pivot level.</td></tr>
<tr><td><center>Resistance 2 (R2) </center></td><td>This is the second pivot level above the main pivot point and above R1</td></tr>
<tr><td><center>Resistance 3 (R3)</center></td><td>This is the third pivot level above the main pivot point and above R2</td></tr>
</tbody>
</table>
Now we explain each of these levels:
Main Pivot Level: This is what we start working with, and it is just the sum of the Daily High +Daily Low + Price at Market closing, this sum is divided by 3, and we get our Main Pivot Level.
Then we have the other six levels, R1, R2, R3, S1, S2, S3, which are of course in reference to support and resistance level, the breaking of any of these levels either up or down can help you set a market target, you can place any of these levels as your selling point.
<h2>3-Pivot Point Calculation and R1 R2 S1 S2 Pivot Levels Calculation.</h2>
As said before we must first calculate our Main Pivot Point which is easily done as it is just the sum of Previous Daily High + Previous Daily Low + Closing market price divided by three.
For S1= (Main Pivot Point *2) - Previous High
For S2= Main Pivot Point- (Previous High - Previous Low)
For R1= (Main Pivot Point *2) - Previous Low
For R2= Main Pivot Point + (Previous High - Previous Low)
<h2>4-How to Apply Pivot Point on Chart. (Screenshot with tag your name)</h2>
<h2>5-How Pivot Points Work. (Screenshot with tag your name)</h2>
The Main Pivot Point Value for yesterday for Steem was 0.492, so R1=(0.492*2)-0.4837=0.5003
R2= 0.492+(0.544-0.4837)=0.5523
R3= 0.544+(2*0.492)-0.4837=1.04
S1=(2*0.492)-0.544=0.44
S2=0.492-(0.544-0.4837)=0.4317
S3=0.4837-(0.984-0.492)=0.083
I did this manually, just to see how it came out, perhaps not the thing you wanted but I just wanted to see if I could do it.
<h2>6-Pivot Point Reverse Trading. (Screenshot with tag your name)</h2>
This chart is for the preceding three weeks, as you can clearly see Steem has not been able to break out from resistance level R1 and always goes back down to Support level S1, so it is actually sticking on average to main pivot point. I do hope that this week we will see Steem go beyond R1, and we will see a bullish price.
<h2>7-What could be a common Mistakes in Trading with Pivot Points</h2>
Pivot points are, to me, just somewhat effective on a short term basis, if we start using pivot points on say a monthly average the market fluctuations would make any analysis inaccurate as it would fail to, among other things, fail to take into account external factors that influence prices. A mistake that is common in trading Analysis, if it weren't there would be no poor traders.
<h2>8-What could be the reasons For Pivot Points is Good.(Pros/Advantages)</h2>
<ul>
<li>Pivot points let you chart the trennd of a crypto coin, and you can get an overall picture of how the market is moving.</li>
<li>Pivot points are easy to use, in fact on coinmarket cap at least everything is ready just for a person to make his analysis.</li>
<li>As they work on a day to day basis their accuracy is quite good, except in the cases where there is a sudden shift in the market due to unforeseeable events.</li>
</ul>
<h2>9-Apply the Pivot Points indicator in the Today chart (the day when you making this task) and set the chart for 15 minutes. Explain the market trend till the time of writing the task and how it will be next till the end of the day. You can give possibilities on both the side bearish and bullish.</h2>
Steem's trennd is, looking at the chart going sideways, on the other hand, despite this, I see a very slow move up and I think that at the end of the trading day it should be very close to $0.60.
<h2>10-Weekly Price Forecast For Crypto Coin: XXXXX(Based on all previous lectures of technical studies Forecast the Weekly price for any Crypto coin, Title will be the same just replace XXXXX with the Coin name and covered all below points in it as a part of Price Prediction for the next 1 week.)</h2>
Weekly Price Prediction for STEEM:
Why STEEM? Well I find Steem very interesting and as I work on this platform I really want to get a feel and get an idea of how it will perform in the near future.
Seeing the charts I feel bullish about Steem, it has been hitting a resistance level for quite a while but this time I think it will break out, mainly because alts will go up at some point and BTC is regaining some momentum.
I base this on a certain look at charts which require a certain skill in Technical Analysis (Ok, I admit it, I am not even close to being good at TA) so I guess the bigger part of my analysis would be because of sentimental reasons, which means I might be just a little biased.
To me the low level will be $0.53 or around S1 and the highest will put it at about $0.75 or above R1.
<h2>Conclusion</h2>
Pivot points are another tool available to people who use Technical analysis. Personally I do not have much confidence in TA, but it does help in giving its user an overall view of the general market trends, but as I said, external factors do play a big part in how the market works and this is beyond TA.
As an aside I have often wondered about the term Fibonacci in TA, I think Fibonacci is as far apart from TA as the moon is from the earth. The Fibonacci formula is just adding the two previous numbers to come up with the third with the starting two numbers being 0,1, it is infinite and natural, in fact fractals are supposed to follow this formula. Markets, I am quite sure are much more chaotic.
Tagging:
@stream4u