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Pivot points are technical analysis indicators used to determine potential support and resistance levels in an asset's price movement. In trading, pivot points are calculated based on the previous period's high, low, and close prices, providing traders with critical price levels to monitor. Traders use pivot points to identify possible entry and exit points, as well as to assess market direction. When the price moves above or below the pivot point, it can indicate bullish or bearish trends, guiding trading decisions.
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