Downwards ==22==Trend-linesTrend--linesTrendlines and Channels

Downward Bitcoin Trend Line MT4 Bitcoin Trend Line Indicator

A downwards bitcoin trend line is drawn above the downward bitcoin trend pattern formed by consecutive lower highs, the downward bitcoin trendline must connect and join at least 2 highs, with the most recent high being lower. For our crypto downward bitcoin trend examples we shall use the MT4 analysis software crypto charts to illustrate example of downward cryptocurrency trend.

Since bitcoin price moves downwards in a zigzag manner bitcoin traders normally draw a ==22==downwarddownwards bitcoin trendline which shows the general downward direction of the bitcoin prices. In crypto market trading analysis, this general bitcoin price direction is known as the TREND by cryptocurrency traders. In crypto currency trading analysis definition we can define this down bitcoin trendline is drawn on chart showing the resistance areas (bearish direction).

How Do I Draw a Bitcoin Trend-line on a Downward Bitcoin Trend? - Downwards BTCUSD Trendline and Downwards BTCUSD Channel

A down bitcoin trend occurs when the bitcoin price makes a series of lower highs and lower lows. Each price high is going to be lower and lesser than the previous and prior high - lower high, & each low is lower than the prior low - lower low hence showing bearish bitcoin price movement.

BTC USD ==22==CryptoCryptoCurrency Down trend lines gain more validity each time bitcoin price touches/tests the down-ward bitcoin trend line but does not penetrate the bitcoin trend line. A down bitcoin trend remains the general direction til this series of lower highs and lower lows is broken.

In cryptocurrency trading analysis, An up side penetration of a down bitcoin trend line is a technical buy bitcoin trading signal, and generally the first indication which the bearish direction of bitcoin prices may soon reverse.

Downward Bitcoin Trend Line MT4 Bitcoin Trend Lines Indicator

When it comes to learning how to draw & learning cryptocurrency trading analysis of charts, you as a btc usd trader need to know that when btcusd market is bearish it forms lower lows & lower highs forming a downward general market direction. These are the points that are used to draw the downward bitcoin trend line.

To draw this downward bitcoin trend setup we use resistances and to do it correctly 2 resistances are needed. When bitcoin price touches/tests this bitcoin trend line, then we sell & place stop loss just a couple of pips above the slanting resistances:

Drawing a Downward Bitcoin TrendLine in Bitcoin - Downward Trend Line & Downwards Channel

Trading This Downward Bitcoin Trend Market Move

When trading using this bitcoin trend line method, this bitcoin trend line setup will show the general direction of the price as downward therefore bitcoin traders only will open short sell cryptocurrency trades. These are the levels and points where if bitcoin price retraces then these levels will give major resistance. This is why many short sellers will wait til bitcoin price retraces upwards and hits these retracements levels to open sell cryptocurrency trades. Bitcoin trade transactions opened at these levels have a high Risk to Reward Ratio with minimum draw down.

For Example, in the above bitcoin trading example, a trader would have opened short sell bitcoin trading signals at the resistance1, resistance2, resistance3 & these sell cryptocurrency trade transactions would have made a lot of profits with minimum amount of drawdown/retracement.

Downward Bitcoin Channel MetaTrader 4 Channel Indicator

A downward channel is drawn by plotting a line which's parallel to the downward bitcoin trend line & then adjusting it to touch bottom boundary of the bitcoin price movement. This then forms a down-ward channel ==22==& as long as the bitcoin stays and remains in between the two channels the general cryptocurrency market direction is intact the btcusd market direction will continue to be being bearish.

How Do I Draw a Downward Channel?

Trading the Downwards CryptoCurrency Channel

The downward channel is used by cryptocurrency traders to show levels where it's best to take profits. Traders will book some profit once the bitcoin price touches/tests lower channel & wait for another retracement before opening a short sell bitcoin trade again.

MetaTrader 4 Tools for Drawing BTCUSD ==22==CryptoCryptoCurrency Channels

The bitcoin trading tools to draw these channels studies on the MT4 bitcoin charts are found on the Lines Tool-bar within the MetaTrader 4 software, to access this MT4 tool bar if it's not activated on your MT4 BTCUSD Platform, Press in "View" Next to the "File" on the top-left corner of the MT4 Bitcoin Software ==22==and click View, Then Click in ToolBars, Then Tick the Lines Tool-bar by pressing on it.

Shown Below is the screen shot of these MT4 tools: just click on this MT4 channels drawing tool & select and choose the point to where you want to place this channels tool on the bitcoin chart.

MT4 Analysis Charts - Downwards Bitcoin Channels

MT4 Bitcoin Trend Lines Tools for Drawing Bitcoin Trend Lines - Downward BTCUSD Trend Line & Downwards BTCUSD Channel

MetaTrader 4 Toolbar - MT4 Tools for Drawing Bitcoin Trend Lines & Bitcoin Channels used to obtain these bitcoin trend-line drawing tools is shown above, to draw these bitcoin trend line setups or channels, just select the above MT4 bitcoin trend-line drawing tools shown on the MetaTrader 4 software and ==22==selectchooseselect--and--choose the two points where you want to draw the downward bitcoin trend line.

This btcusd trend line trading strategy is one of the simplest and popular indicators used by cryptocurrency traders to analyze and interpret the btcusd market bitcoin trend direction.

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