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The other part of this trading strategy, pivot point system, is mainly used to determine the price support or resistance zone. The relative places of these zones and the last close price forecast the market mood of next day. Combining both in trading, double signals from them increase investors confidence to maximize positions to get more profits. It is also helpful to refine the stop-loss point B and D to minimize loss.
However, In the process of implementing this trading strategy, the most crucial and difficult problem for each investor is how to determine the right place of entry point A and C.