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The basic idea is that if the price is trading above the pivot point, the market is generally considered bullish, and if the price is below the pivot point, the market is considered bearish. Pivot points also generate several support (S1, S2, S3) and resistance (R1, R2, R3) levels. These levels help you identify potential entry and exit points. When prices approach a resistance level, there's a higher chance of a sell-off, and when prices approach a support level, there's a higher chance of a bounce.
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