CryptoCurrency Break Out Strategy Indicators
With consolidation patterns the btcusd cryptocurrency market can go in any direction after a bitcoin crypto price breakout. Consolidation chart patterns are used to identify break out patterns in bitcoin cryptocurrency charts. There are two different types of consolidation chart patterns which form on bitcoin crypto charts:
- Symmetric Triangles Patterns - Consolidation BTC USD Crypto Patterns
- Rectangle Patterns - Range Bitcoin Patterns
Consolidation Trading Patterns
Symmetrical triangles are chart patterns with converging trend-lines that form a btcusd crypto price consolidation period which signals there's going to be a btcusd crypto price breakout in one direction after this pattern breaks out in one direction. The bitcoin buy signal from a consolidation triangle is the upside bitcoin price break, while a down side bitcoin price break is a bitcoin sell signal. Ideally, a the bitcoin price breaks out from a consolidation chart pattern prior to and before getting to the apex of the symmetrical triangle.
BTCUSD CryptoCurrency TrendLines bitcoin crypto trend-lines can be drawn by joining these lows and highs of the consolidation pattern for the bitcoin crypto price, the trend lines formed are consolidation and converge to form the apex - consolidation triangle pattern. A btcusd crypto price breakout should occur somewhere between 60% - 80 % into the triangle consolidation pattern. An early or late crypto break out is more prone to btcusd cryptocurrency whipsaws, and therefore less reliable. After a bitcoin price breakout to one side the apex of the consolidation triangle forms the support & resistance levels for the bitcoin price. CryptoCurrency price that has broken out of the consolidation pattern shouldn't retrace past the apex. The apex is used as a stoploss setting level for the open trade positions placed after a btcusd crypto price breakout.
When consolidation bitcoin patterns occur we say that the bitcoin market is taking a pause before deciding the next direction to take - this also signals an impending bitcoin price breakout - Crypto Break Out Strategy Indicators - CryptoCurrency Breakout Indicator - Indicator To Confirm Breakout.
These bitcoin consolidation patterns form when there's a tug of war between buyers and sellers and the bitcoin market can't decide which way to proceed.
Consolidation Chart Setups - Crypto Break Out Strategy Indicators - Crypto Breakout Indicator
However, this consolidation chart pattern can not go on forever - the chart examples below shows how the consolidation pattern eventually had a bitcoin price break out and moved in one direction.
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After btcusd crypto price consolidating, If bitcoin price breaks out the upper line we open bitcoin buy trades, if bitcoin price breaks out the lower line we open-sell trades.
Range Pattern
A rectangle consolidation pattern is a trading range with a narrow bitcoin price action that develops and forms in to a consolidation phase in btcusd cryptocurrency trading market. The bitcoin trading range is defined by 2 parallel bitcoin btcusd trend-lines which are horizontal and these reflect the presence of support & resistance areas at this particular area. Range consolidation chart pattern is drawn on a trading chart using a rectangle, therefore the name rectangle bitcoin trading pattern.
For this bitcoin crypto consolidation chart pattern, bitcoin price makes a series of highs & lows which can be connected with horizontal btcusd crypto trend lines which are parallel to each other. Range consolidation pattern forms over an extended period of time giving this chart pattern its rectangle shape.
A bitcoin cryptocurrency breakout of btcusd crypto price action from this rectangle consolidation pattern forms when either of the horizontal line is penetrated & the btcusd crypto trading range of the rectangle bitcoin cryptocurrency pattern setup is broken. An up side btcusd crypto price breakout is a buy btcusd crypto signal. A down side btcusd crypto price break out is a sell btcusd crypto signal.
Range Pattern - Crypto Break Out Strategy Indicators - CryptoCurrency Breakout Indicator - Bitcoin Indicator To Confirm Breakout
BTCUSD CryptoCurrency Price breaks out of the rectangle consolidation range after a period of time and bitcoin cryptocurrency price continues to move upwards after an upward bitcoin price break out.
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