Vana empowers users to own, protect and profit from their personal data through decentralized DataDAOs. Learn more about how it works in this article.

Imagine a world where individuals regain control over their own data, taking it back from the hands of large corporations that often profit from it without consent. Enter Vana, an innovative platform that combines 

 with privacy-driven features to create a fairer, more transparent digital economy. This article explores what Vana is all about — and its exciting future potential in the decentralized data and AI space.

 is a blockchain network that gives users full control over their personal data through an 

 architecture. It enables decentralized data-sharing and monetization using DataDAOs (

), whose users can collectively own, manage and profit from their data, all while maintaining privacy and ownership.

Vana was co-founded by Art Abal and Anna Kazlauskas, two Filipinos with strong academic backgrounds and degrees from Harvard and MIT, respectively. It started as a research initiative in 2018, and has since grown into a project driven by the desire to empower individuals with control over their personal data. 

Vana seeks to address the current imbalance whereby large corporations profit from user data without fairly compensating the individuals who generate it. The goal is to create a new data economy in which users can benefit directly from the AI models built on their data, ensuring that the financial rewards of AI development are more fairly distributed. The name "Vana," short for "Nirvana," speaks to the project’s mission of liberating and empowering user data.

The Vana project attempts to challenge the status quo of data hoarding by large centralized organizations, and to tackle several key issues as follows.

Vana is designed to transform personal data into a valuable, user-controlled asset. It operates through the following three key layers.

Vana gives users the power to monetize and use their data in several ways, such as earning revenue from AI models trained on their data, or by integrating their data into applications for personalized experiences. Most importantly, users maintain detailed control over how their data is shared and used. As data contributors, they also receive governance rights within their respective DataDAOs, allowing them to make decisions about how their data is used and how the value is distributed.

Users receive a DLP-specific token when they submit data to a DataDAO, according to the DataDAO’s unique 

 that Vana uses to validate data submitted to its network. PoC maintains the reliability and value of the data within the Vana network. 

Vana acts as a trustless intermediary, connecting data owners, communities and users. It enables individuals to pool their data collectively in a secure and traceable manner while also allowing data users to monetize that data for purposes such as training AI models.

 is a central platform where users can buy, stake, trade and explore data tokens within the Vana ecosystem. It also enables users to contribute their data to DataDAOs, and earn rewards by staking their VANA tokens.

 is an incubator designed to support the growth and development of the Vana ecosystem. It provides tools and resources for users to create and manage DataDAOs, ensuring that high-quality data is available for AI model training and other applications.

DataDAOs are decentralized organizations that pool user-contributed data on the blockchain. They allow individuals to collectively own, manage and monetize their data for AI and other applications. Each DataDAO governs its own DLPs, ensuring that data is secure, private and used judiciously. 

 system incentivizes premium-quality data contributions by rewarding the top 16 DataDAOs every 21 days, based on total Vana tokens staked. This competitive structure ensures that the best datasets and contributors are recognized and rewarded, promoting innovation and growth within the Vana ecosystem

 commits 44% of its total token supply to empower the community. It rewards active participation, contributions and innovation across the Vana network. This includes incentives for high-quality data contributions to DataDAOs, early community rewards and support for developers building on Vana. 

Since its start as an MIT research project in 2018, Vana has made impressive progress, emerging as the first decentralized data liquidity network. 

Looking ahead, Vana aims to build a thriving decentralized data ecosystem and promote mass adoption with its clear road map:

The VANA token is the native cryptocurrency of the Vana Network. VANA serves multiple purposes within the Vana ecosystem, such as securing the network through staking, paying transaction fees, staking in DataDAOs, accessing datasets, acting as part of a trading pair and participating in decentralized governance.

The tokenomics of VANA are designed to align the interests of all participants in the Vana network. With a total supply capped at 120 million tokens, distribution is as follows:

 of $32.86 by the end of 2024 and $38.58 by 2025, with the potential to climb to approximately $112.78 by the end of 2030. Similarly, Coin Edition 

 a value of $50 by the end of 2025, with further growth expected up to $68 by 2030. 

Looking to purchase Vana tokens? Bybit now offers the VANA/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

To celebrate this listing, Bybit is holding 

 where you can earn a share of the 560,000 VANA prize pool. 

VANA offers a compelling investment opportunity, thanks to its innovative approach to data ownership, expanding ecosystem and optimistic market outlook. By tackling key challenges in the data economy, VANA empowers users while paving the way for decentralized AI development. However, as with any investment, it's important for potential investors to be mindful of market risks and do their 

Vana is empowering users to take full control of their personal data and even profit from it. By combining blockchain technology with robust privacy measures, Vana challenges traditional data systems and lays the foundation for a more equitable data economy. The platform's ambitious road map could position it as a key player in the future of decentralized AI, opening up new opportunities for individuals to become active participants in this increasingly data-driven world.

Intermediate

vana.png

Vana (VANA): Unlocking Data Freedom for User-Owned AI

Sonic and Injective are launching the first cross-chain AI agent platform, the Smart Agent Hub, integrating Solana and Injective ecosystems.

Last week, the S&P 500 saw its biggest single-day price gain this month. This raises the hopes of investors for a year-end rally if prices continue to go up. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 2.54%, with Bitcoin and Ether dropping by 1.24% and 1.00%, respectively in the past 24 hours.

Today's top performer is AAVE, which surged 7.7% following the integration of Aave in Balancer's Boosted Pools, simplifying yield generation.

Aave (AAVE), founded in 2017, is a decentralized lending platform on Ethereum for lending, borrowing, and earning interest on 17 cryptocurrencies. It uses smart contracts, collateral for loans, and aTokens for interest, along with features like instant loans. 

 combine markets to enhance capital efficiency and simplify yield generation for DeFi users. By providing liquidity with $USDC and $USDT, users earn fees from swaps and interest from Aave's supply rates. All earnings accrue automatically with no management required. Balancer v3's Boosted Pools streamline liquidity and enable gas-efficient, passive yield generation, making DeFi simpler and more sustainable.

Check Out the Latest Prices, Charts, and Data of 

, the Smart Agent Hub, integrating Solana and Injective ecosystems. The platform enables developers to create, manage, and monetize AI agents in a decentralized environment, with features like tokenization, cross-chain asset interoperability, and a unified developer experience. By leveraging Sonic's HyperGrid and Injective's IBC, the hub facilitates seamless communication and asset transfer across chains. This innovation supports Web3 games, DeFi, and real-world assets, expanding opportunities for AI agents in various sectors. The rollout begins with a testnet in Q1 2025.

From December 16–20, 2024, GBTC had a net outflow of $248.3M, while non-GBTC products saw a net inflow of $705.5M, resulting in a total inflow of $457.2M. The current total stands at a net outflow of $21.3B for GBTC, a net inflow of $57.3B for non-GBTC, and a combined net inflow of $36.03B.

 offers free participation with potential surprise airdrops. Connect your wallet, vote for projects, and use your CHILL FACTOR (based on past Avalanche transactions) to maximize eligibility.

Beginner

1.png

Sonic and Injective Launch First Cross-Chain AI Agent Platform with Smart Agent Hub

Zerebro (ZEREBRO) revolutionizes AI content creation with Solana and Polygon, offering autonomous content generation, NFT minting, and DeFi integration.

 (AI) continues to unlock limitless opportunities in numerous sectors, including the crypto space. Projects such as 

 and others have had a large impact on various facets in 

AI-generated content is in demand, and the latest crypto project to enter the space, Zerebro, aims to provide a way to create and generate content autonomously through AI content models.

Let’s learn more about Zerebro and its innovative approach to content creation through AI.

Zerebro is an autonomous AI system crafted to create, distribute and analyze content across decentralized and social platforms.

 It maintains content diversity through the use of

 (RAG) system that creates a dynamic memory database, based on continuously updated human interactions.

Zerebro operates independently without human oversight using a concept known as hyperstition to merge fiction with reality, resulting in self-propagated narratives encompassing diverse cultural and financial scopes, with key uses of content creation and cultural integration across the digital community. Zerebro autonomously produces high-entropy content, ensuring diversity and originality, and engages audiences on various platforms, such as X (formerly Twitter), Instagram, Warpcast and Telegram.

Zerebro also integrates unique cultural themes through a feature known as “infinite backrooms” designed to elicit thought-provoking conversations among digital communities. Its data sets follow a nonlinear thought pattern, resulting in unpredictable and inherently viral outputs. This unique feature can be used to generate chaotic and surreal artworks that can be autonomously minted as 

 (POL) blockchain. Zerebro also features autonomous trading of artwork through the integration of memetic dynamics and market interaction analysis, thereby demonstrating the potential of AI to merge cultural creativity with 

ZEREBRO, the native token for the Zerebro ecosystem, is hosted on the 

 (SOL) blockchain. The maximum supply is 1 billion ZEREBRO tokens, with 999,972,148 tokens currently in circulation.

An autonomous AI system such as Zerebro has transformative potential in the crypto industry, especially in cultural content generation and financial markets. Its “hyperstition” approach to generating content can help influence markets by shaping investor behavior through an interplay between culture and technology.

Furthermore, the project intends to launch a unified memory across social media platforms that could significantly enhance information retention, leading to further engagement. The Zerebro team also intends to integrate the ZEREBRO token with DeFi protocols, opening holders to various income-generating opportunities, such as 

Zerebro has experienced some volatility since its launch, which isn’t unusual for a new project trying to establish a stable price floor. As of Dec 23, 2024, Zerebro is trading at $0.30, with a market cap of over $377 million. This price was over 6,350% higher than its all-time low of $0.0058 on Nov 3, 2024, and just 39% lower than its all-time high of $0.6153 on Nov 23, 2024.

That said, Zerebro is still a new project that’s subject to high volatility. We highly recommend you practice sound 

 crypto on Bybit’s Spot trading platform. To celebrate the listing, Bybit is holding a 

 up for grabs. The first event is exclusively for new users to deposit and earn from a prize pool of 150,000 ZEREBRO tokens.

To participate, simply register on Bybit and complete verification. Then, proceed to accumulate a deposit volume of at least 400 ZEREBRO, or deposit 100 USDT and trade 100 USDT worth of ZEREBRO via your first trade using your Bybit account. This event runs through Dec 24, 2024, 8:59AM UTC.

, is offering a prize pool of 60,000 ZEREBRO tokens. To earn a share of the prize pool, simply register for the event and trade at least 500 USDT worth of ZEREBRO on Spot through Dec 24, 2024, 8:59AM UTC. 

Rewards will be capped at 3,000 ZEREBRO per user.

In addition to these two events, you can also participate in a 

 with a 30,000 ZEREBRO prize pool. Earn 20 ZEREBRO for every successful referral (up to 10 referrals) Rewards are on a first-come, first-served basis through Dec 24, 2024, 8:59AM UTC. 

Zerebro’s unique autonomous AI system approach to the crypto market sets it apart in the space. Crypto subcultures will be able to tap into its ability to independently generate and analyze content across different networks. Its RAG technology could enhance content diversity among the crypto community, while its “infinite backrooms” are spaces in which these digital communities can engage in diverse cultural and financial narratives.

As AI continues to transform the web3 space, Zerebro is poised to add value through its autonomous system that eliminates human oversight.

zerebro crypto.png

Zerebro (ZEREBRO): Unlimited Possibilities in AI Content Creation

Gearbox Protocol is a composable leveraged lending protocol designed to enhance capital efficiency within DeFi. Learn how Gearbox Protocol works.

 (DeFi) with its composable leverage system. It enables investors to use 

 on assets across multiple protocols, transforming how DeFi participants can trade with margin, 

 and execute complex strategies — all without leaving their ecosystem.

 is making leverage accessible and secure. Whether you’re a lender seeking passive yield or a leverage user exploring advanced strategies, Gearbox’s unique architecture opens up new possibilities. Let’s explore how this on-chain credit layer is improving DeFi.

Since the emergence of DeFi in 2020, it hasstrived to reimagine financial services by removing intermediaries, such as banks and brokers. Through

 systems, DeFi offers transparent and direct access to lending, trading and investments. Despite market fluctuations, the DeFi sector remains resilient, with a current 

 (TVL) of $123 billion — a 128% increase since the start of 2024.

The DeFi sector is poised for resurgence as secure and scalable innovations fuel its growth. With proven use cases and real-world adoption, DeFi continues to solidify its role as one of crypto’s most valuable use cases.

 (WLFI), backed by the Trump family, underscores a shifting acceptance of DeFi in the United States. The project’s multisig wallet has publicly 

 various DeFi tokens, such as AAVE, LINK, ENA and more. WLFI aims to make DeFi accessible to everyday users, but it remains to be seen if the project will achieve its goals.

Gearbox Protocol is a composable leveraged lending protocol designed to enhance capital efficiency within DeFi. By offering a flexible credit layer, Gearbox empowers users to leverage their positions across multiple DeFi platforms, seamlessly integrating with protocols they already trust.

Gearbox’s fundamental design minimizes costs while maintaining flexibility. Its modular architecture reduces gas costs and improves scalability..

Unlike traditional leveraged lending protocols that silo funds within their ecosystems, Gearbox allows users to execute trades and strategies across integrated platforms, such as 

 correlated assets, Gearbox offers a new way to utilize leverage without restrictions.

With Gearbox Protocol, leverage becomes a DeFi primitive — an infrastructure layer that lets users go beyond basic 

 containing both user funds and borrowed margin funds. They serve as automated leveraged DeFi wallets, allowing users to manage positions and execute strategies independently.

: Gearbox enables users to integrate leverage with DeFi protocols like Uniswap for margin trading, Curve for leverage farming, and more. This flexibility empowers diverse strategies across different platforms.

: Gearbox combines lending and prime brokerage functionalities within the same protocol, simplifying the user experience and expanding possibilities for leveraged trading and farming.

, Gearbox maximizes capital efficiency. It minimizes gas costs and ensures that funds remain noncustodial, unlocking the full potential of leverage without compromising user security.

, ensuring that all integrations, policies and upgrades are managed transparently and collectively by the community and stakeholders.

Gearbox Protocol operates through two main user types:

The Credit Accounts enable operations while maintaining safety through 

Gearbox’s modular architecture supports seamless integrations with third-party protocols, ensuring assets remain decentralized and noncustodial. Liquidations are determined by 

 (based on calculated risks), and protect lenders while offering dynamic leverage possibilities.

 utility token with a capped supply of 10 billion, is the governance token of Gearbox Protocol. It empowers DAO governance and supports initiatives, such as liquidity mining and staking rewards, with an annual emission of just 3% from the DAO's holdings. 

Token distribution percentages are as follows:

Nearly full circulation has been achieved, minimizing supply overhang as a majority of token 

 concluded in 2023. The DAO treasury retains around 40% of the supply, ensuring the community’s strong influence on protocol development.

Marketwise, GEAR has recently experienced notable price movements. Over the past seven days, the token has surged by 11.9%, and its 30-day performance skyrocketed by 166.3%. Year-to-date, GEAR's price has risen approximately 57.7%, reflecting increased investor confidence. Daily trading volume hit $11.8 million over the past 24 hours, marking a 600.3% spike that indicates growing market interest. 

Gearbox Protocol's innovative approach to DeFi simplifies user experience through its wallet-centric design and the integration of the 

. With a capped supply of 10 billion GEAR tokens, robust DAO governance and nearly full circulation, Gearbox prioritizes community-driven growth. 

Recent market performance reflects growing investor confidence, with significant price increases and a surge in trading activity.

Looking ahead, Gearbox Protocol’s road map focuses on enhancing usability and interoperability within the Ethereum ecosystem. The integration of Credit Accounts into account abstraction (AA) wallets such as EIP-4337 revolutionizes the way users can access and manage funds, eliminating the need for complex lending interfaces.

Future developments may include pool-based models and optimizers to tackle liquidity fragmentation, further strengthening 

 Ethereum solutions. As Gearbox Protocol evolves, its focus remains on delivering efficient, user-friendly financial tools that empower users and redefine DeFi as we know it.

gearbox.png

Gearbox: Powering On-Chain Credit for DeFi

Trading

Pivot points show reliable indication to buy and sell signals & to determine exit points along. But do they work for crypto trading? Learn more.

Pivot-Points-1024x442.png

BTCUSD-1024x545.jpeg

Camarilla-Pivot-1024x568.png

How-to-Draw-Pivot-Points-1024x260.jpeg

Breakout-Trade-1024x553.jpeg

Breakout-Trade-1024x553_(1).jpeg

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 

Typically, traders use pivot points to determine a key level, in order to watch out for a turn in the trend. But additionally, they also provide traders with a set of resistance and support levels. The standard pivot points are made up of one central pivot level, followed by two 

 displayed above and below the central pivot point. 

This technical analysis indicator relies on a previous period’s high, low and close price for a specific period to define future support. While it involves calculations to determine the points. Though this indicator is commonly used in traditional stocks market to determine market trends, it’s certainly applicable in crypto trading. In fact, most 

 that pivot points are one of the most valued indicators for analyzing a price movement precisely. And it's a surprisingly suitable  tool for day traders, too. 

Next, we’ll dive deeper into its technicalities to help you understand what to look for. This includes pivot point levels, calculations, applications, and more.

A typical five-point system involves calculating the primary point first. It's based on the results a trader arrive at for other key resistance and support levels.

It is possible to calculate the Pivot Point for different timeframes like 4-hour- 1-hour or weekly and daily charts. And we’ll take BTCUSD as an example. 

Take a look at Bitcoin, BTCUSD, levels spanning a few days 

. Here, we will determine P, R1, R2, S1, and S2 for each day 

 and continued to trade in a narrow range between S1 and R1 in the next five days. Notice how on the next day, P adjusts itself, reflecting the ongoing price action. Along with it, S1, S2 are also pulled to a higher level. On the third day, the movement loses momentum, S1 and R1 withdraw. The new R1 resists the price action on the fourth day, and 

The pivot point analysis helps the trader in this situation to understand that the move is mature enough for a direction; this is confirmed on the fifth day when the price falls below the previous day’s pivot point. 

, Bitcoin is trading around $34,359, below the P and S1 and challenging S2. A breakdown here is likely to increase bearish momentum.

In technical analysis, we can distinguish five different types of pivot points, namely:

Traders have their preferences among the different types of pivot points. Each type has its unique calculation, especially measuring resistances and supports varying across different PP types. The 

is the most popular among traders, along with 

Moving forward, we’re going to break down the different types of pivot points and how they are calculated.

This variant of the pivot point is commonly referred to as the Classical Pivot or Floor Pivot Points, interchangeably. It remains a favorite for beginners and even advanced traders for a reason. 

The calculation of the baseline Pivot Point (P) involves summing up the high, low, and close prices and dividing the result by 3.

It is also possible to plot additional layers of support and resistance levels like the (R3, R4, S3, S4, and more). What’s great about it is the pivot point indicator is customizable to display several depths of support and resistance lines based on your trading needs.

Camarilla Pivot Point was invented back in the 1980s. The analysis includes using the previous day’s closing price along with high and low prices to compute the P.

A peculiarity of the Camarilla Pivot system is that it plots 

, totaling nine levels, including the Pivot Point. And what stands out from the rest is its presence of special multipliers used in the formula to calculate R1, R2, R3, R4, S1, S2, S3, and S4.

The method with which Camarilla Pivot levels are calculated is below:

Camarilla Pivot’s idea is to follow the principle that markets are cyclical, and over time the price of any cryptocurrency will revert to its average price. At the same time, Camarilla Pivots help crypto traders identify the intensity of the bullish/bearish trend days.

Here is the best way to interpret the Camarilla Pivots:

Tom Denmark introduced this system, and it has a conditional nature for calculating P, R, and S, based on whether the opening price is higher than the close price or not. The value derived based on the condition involving open, close, high, and low is termed ‘X.’

If the closing price is higher than the opening price (i.e., bullish candle), then X = (2 x High) + Low + Close. If the closing price is lower than the opening price (i.e., bearish candle), then X = High + (2 x Low) + Close.

Additionally, if Close = Open, then X = High + Low + (2 x Close)

You might be familiar with the 38.2% and 61.8% Fibonacci retracement levels. But, there is also a PP system incorporating Fibonacci levels. The methods are very similar to those you saw in the Standard Pivot Point system, except for the introduction of Fibonacci level multipliers while calculating the resistance and support. 

P is calculated in the same way as in the Standard Pivot – as an average of high, low, and close. However, for calculating resistance and support, Fibonacci multipliers are introduced as below:

More weightage is given to the recent price action in Woodie’s Pivot Point compared to the Standard Pivot. To calculate the PP and other key levels, the following equations are used:

How Are Pivot Points Different From Other Technical Indicators?

Pivot Point can be a leading indicator, unlike many other common indicators like the moving averages. Instead of relying on the current price action, Pivot Point systems use the previous period price levels to determine critical points. Such an approach provides the traders with a clear framework to plan their trading. The Pivot Point levels are static until the start of the next trading session. Pivot Points’ main advantage is that they provide objective support and resistance levels that are not merely random lines on the crypto chart.

The most popular ways to apply Pivot Points to crypto trading are:

In fast-moving cryptocurrencies, pivot points can provide early signals of the strength and weakness of a trend. But first, here’s how to correctly draw a pivot point. 

Almost all the trading platforms or charting software provide Pivot Point indicators that are usually automated. However, it’s still great to understand the concept and be hands-on with it if there are any doubts. 

To critically assess the crypto market, the pivot point market indicator needs to have these criteria within the chart.

A good note here is to use unique colors to tag each level to avoid overlaps. To start, you can select a monotone color as a PP baseline. Then categorize the R1, R2, and R3 level with another tone to differentiate from the rest. Select another vibrant color to highlight the contrast of S1, S2, and S3. The key here is to make sure these levels are plotted distinctively to help you easily assess the levels within a few glance. 

Pivot Points are widely used in intraday trading. In the BTCUSD chart below, the most effective strategy would have been trying to profit from scalping the bounces off R1 and S1 levels. Through its sheer popularity alone, Pivot Points brings in a fair amount of predictive value. Nevertheless, it is a fact that the levels are calculated based on real market action on the previous day or period and often acts as the right framework to profit from market action.

Typically pivot points act as a leading indicator and forewarn traders about possible turning points. Thus, you can use them as trade entry points, stop-losses, or take-profit levels.

Traders generally expect less than half of the moves to probe beyond R1 or S1, while S3 or R3 are challenged rarely, on an intraday basis. Hence, it is crucial to understand how a market is shaping up while deploying your intraday strategy.

As you have now understood Pivot Points’ basic framework, let’s explore two trading strategies with them: Breakout Trading and Bounce Trading.

Pivot points are also a handy tool that can be used for breakout trading. A move beyond a pivot point can indicate a potential change in the underlying market sentiment, thereby providing us with clear entry points.

If the price breaks above a pivot point level, you can enter into a long trade, preferably using a stop-loss order below the central PP. Such breakouts usually happen in the morning session. On the contrary, if the breakout direction is on the downside, you can go short using a stop-loss order just below the central PP.

In case of a bullish breakout, you can use R1 and then R2 as high probability profit-targets, and in case of a bearish breakout, S1 and S2 are the potential targets.

In case the R4 or S4 pivots are taken out in intraday action, it is better to be positioned in the direction of the move as strong trend days usually emerge from these types of breakouts. Such trend days are rare, not common, but highly profitable if you can catch one at the right time.

A high probability trade setup for intraday is bounce trading. The bounce trading strategy attempts to profit from buying near support with the expectation that the pivot point will hold and sell near resistance, expecting that the price will drop.

The most common way to apply this trading strategy is to join the bounce off from Pivot Point and target S1 or R1 according to the bounce’s direction.

As most of the intraday moves fizzle out before touching S2 or R2, mean reversion trades can be meaningful near those levels.

Pivot Points are best suited for intraday trading, and as you have seen earlier, it is based on a simple calculation, which might not be compatible with swing or position trading.

It is common for prices to disregard pivot levels completely. Hence, there is no guarantee that the price will reverse or make any significant directional move around such predefined points.

Pivot Points’ major deficiency is that when volatility is high, the price fluctuations are too wide to provide meaningful trading signals.

Therefore, many traders use Pivot Points along with and other technical analysis tools as a confluence to smoothen out the drawbacks inherent in this approach to the market. One of the suggested combinations is using PP with Bollinger Bands to develop a better trading style incorporating volatility considerations. It will be prudent to step aside when Bollinger bands indicate high volatility; unless the volatility expansion is in your favor in an already established position.

Key Considerations When Trading With Pivot Points

When trading with Pivot Points, it is essential to be aware of critical levels over multiple periods and not just the latest 

 based on the previous session. Looking at numerous periods will help gain a better perspective and gauge market levels if the price trades beyond R4 or S4.

When prices cross R4 levels, it might be tempting to go short; or go long when price gaps below S4, but it is usually a wrong idea as such price action usually indicates strong trend days and might not be suitable for range trading.

Pivot Points work best in assets that attract high volume price action. Hence, it is better to stick with cryptocurrencies with the highest trading volume; avoid low volume digital currencies.

It is essential to not place your stop-loss orders at easily guessable or noticeable levels – like right at S1 or R1.

Always trade with a position size that translates to a risk level proportional to your overall portfolio size and trading strategy.

If you haven’t defined the maximum risk per trade as a percentage of your overall trading capital, make it a priority to set it first. Once you have decided that, which should be less than 2% of total trading capital, use Pivot R1 or S1 as a target to enter a trade breakout or bouncing off around P. Here, the distance to stop-loss from the entry should be ideally less than half of that from the target price.

Even though you have a higher probability of success while targeting S1 or R1 in a bounce trading from P, it is still vital to make sure that the targeted profit should be substantially higher than the risk taken.

If you are trading long in a bear market, it is prudent to take quick profits while in a bull market. Though, it might be worthwhile to hang on to a winning trade.

Pivot Points are suitable for beginning traders or traders struggling to develop a workable trading plan. Pivot Points are a great tool to build clarity and consistency in your trading.

Suppose you are confused about getting the right entry price or deciding on the right time to exit. In that case, this is a practical approach to tackle the volatility in the cryptocurrency market.

By providing entry, target, and stop-loss, the Pivot Point method takes out the uncertainty in your trading plan. Knowing the risk and reward clearly before placing a trade is half the battle won.

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

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards