Drawing Bitcoin Trend Indicator MT4
How to Draw BTCUSD Upwards Trendlines on Bitcoin Trading Charts
An upwards bitcoin trendline is drawn below the bitcoin trend pattern by joining at least 2 bitcoin price lows. This upwards bitcoin trend line will draw a trendline which explains the general direction of the price.
The example shown below shows how bitcoin price moves when it's moving in a bullish upwards bitcoin trend market. The bitcoin price will move up-wards forming support zones.
Since the bitcoin price moves in a zigzag manner bitcoin traders normally draw a bitcoin trendline which portrays the general upwards bitcoin trend direction of the price.
A cryptocurrency up-wards trend forms when the fore bitcoin price will continue making consecutive higher highs and higher lows. Each price high is going to be higher than the previous high - higher high, & each low is higher than the previous low - higher low.
Bitcoin Uptrendlines gain more validity each time bitcoin price tests/touches this upward trend line but doesn't penetrate it. A cryptocurrency upward trend remains in play until this sequence of higher highs & higher lows is broken.
A down side penetration of an up-wards bitcoin trendline is a technical sell bitcoin signal, & usually the first indicator which an up-ward bitcoin trend might soon end.
Drawing an Upwards BTCUSD CryptoCurrency Trend-Line
When the bitcoin market moves upwards it forms higher highs and higher lows forming a bullish bitcoin trend movement - Bitcoin Upwards Trend. An upwards btcusd trendline then can be plotted by joining the higher lows.
To draw this bitcoin upwards trend line we use support zones. To plot the bitcoin up-wards trend-line correctly 2 support levels are needed. When bitcoin price touches the up-wards bitcoin trendline we open buy bitcoin trade and place stop loss cryptocurrency orders just a couple of pips below the bitcoin upward trend line. The bitcoin example illustrated below shows an example of an upwards bitcoin trend line.
Drawing The Correct Upward Trend Line Guide Lesson - Day Trendlines Strategy - Drawing Bitcoin Trend Indicator MetaTrader 4
The upwards bitcoin trendline strategy will show the general bitcoin trend direction of the market as upwards - therefore bitcoin traders will only open buy cryptocurrency trade positions as long as bitcoin price is moving within this upward bitcoin trend set-up within the support areas. These bitcoin price support levels are areas where if the bitcoin price retraces then these levels will provide strong supports for the bitcoin price. This is why many bitcoin buyers will wait until bitcoin price retraces downwards & hits these bitcoin trendline retracements levels so as to open buy cryptocurrency trades. Bitcoin trade transactions opened at this support levels have a high Risk to Reward Ratio with minimum bitcoin draw down - price pull back.
In the above bitcoin up trend line bitcoin strategy one would have opened buy cryptocurrency trades from the bitcoin signals generated at support 1, support 2, support 3 & these cryptocurrency trades would have earned profits with a minimum amount of bitcoin draw down - price pullback.
Drawing BTCUSD Trend Indicator MetaTrader 4
How to Draw Downward Trendlines on Crypto Currency Charts
A downward bitcoin trendline is drawn above the bitcoin downward trend pattern formed by consecutive lower bitcoin price highs, the bitcoin downwards trend-line must join at least two bitcoin price highs, with the recent most bitcoin price high being lower. For our bitcoin downward trend line example we shall use the MetaTrader 4 btcusd trading analysis charts to illustrate example of downwards cryptocurrency trend.
Since bitcoin price moves downwards in a zig-zag manner bitcoin traders normally draw a bitcoin downwards trend-line which portrays the general downwards bitcoin trend direction of the bitcoin prices. In trading analysis this general bitcoin price direction is referred to as the Crypto Currency TREND by cryptocurrency traders. In btcusd analysis definition we can define downwards trend-line is drawn on bitcoin chart showing the resistance areas bearish btcusd market trend direction.
Day Trend Lines Strategy - Drawing Trend Indicator MetaTrader 4
A bitcoin downwards trend occurs when the bitcoin price forms series of lower highs & lower lows. Each bitcoin price high is lower than the previous price high - lower high, & each bitcoin price low is lower than the prior low - lower low therefore showing bearish bitcoin price movement - downwards cryptocurrency trend.
Bitcoin Downward trendlines gain more validity each time bitcoin price touches the downwards bitcoin trendline but doesn't penetrate the bitcoin trend line. A downwards trend remains the general bitcoin trend direction until this sequence of bitcoin price lower highs & bitcoin price lower lows is broken.
In bitcoin trading analysis, An up side penetration of a bitcoin downwards trend-line is a technical buy bitcoin signal, and is usually the first sign that the bearish bitcoin price trend might soon reverse.
Downward BTCUSD Trend Line MT4 Trend Lines Indicator
In learning how to draw bitcoin trendlines correctly - you need to know that when the bitcoin trend is bearish bitcoin price forms lower bitcoin price lows & lower bitcoin price highs forming a general downward bitcoin market trend direction. These are the points which are used to draw the downward bitcoin trendline.
To draw this bitcoin downwards trend line we use resistance levels and to draw a downwards bitcoin trend line correctly two resistance areas are needed. When bitcoin price tests/touches this bitcoin trend-line, then we open sell cryptocurrency trades & place stop loss btcusd orders just a few pips above the sloping resistances:
Trading This Downwards BTCUSD Trend-Line
When bitcoin trading with this bitcoin trend line bitcoin strategy, this bitcoin trendline strategy will show the general bitcoin trend direction of the market as downwards therefore bitcoin traders will only open sell cryptocurrency trades. These bitcoin trend line levels are levels where if bitcoin price retraces then these zones will provide major resistance. This is why many bitcoin sellers will wait until bitcoin price retraces upward & hits these trend line retracements levels to open sell cryptocurrency trades. Bitcoin trades opened sell cryptocurrency trades at these levels have a high Risk-to-Reward with minimum drawdown.
For Example, in the above bitcoin crypto example, a trader would have opened sell cryptocurrency trades at the resistance 1, resistance 2, resistance 3 & these sell cryptocurrency trades would have earned profits with a minimum amount of bitcoin draw down - price pull back.
Drawing BTCUSD Trend Indicator MT4
The BTCUSD CryptoCurrency Drawing Bitcoin Trendline Indicator MT4 bitcoin tools to draw these bitcoin trendlines on MT4 software can be found in the MetaTrader 4 drawing tool bar within the MT4 software, To access this MetaTrader 4 toolbar if it isn't displayed on your MT4 software, Click in 'View' Next to the 'File' menu at top left corner of MetaTrader 4 software & click View, Then Click on Toolbars, Then Tick 'Lines Tool Bar' by clicking on it.
Shown Below is the screenshot Image of the MetaTrader 4 drawing tool-bar. To draw a bitcoin trendline on a chart just click this MetaTrader 4 bitcoin trend-line drawing tool and choose the points where you want to draw the bitcoin trend-line on MT4 bitcoin chart.
Drawing Trend Indicator MT4 - Drawing Trendline Indicator MT4
This bitcoin trend-line strategy is one of the popular bitcoin indicators used by cryptocurrency traders to analyze and interpret the bitcoin price trend trading direction.
Drawing Correctly Bitcoin Trend Line Guide Tutorial - Day Trading Bitcoin Trend Lines Method - Drawing Bitcoin Trendline Indicator MetaTrader 4 - Drawing Trendline CryptoCurrency Indicator MetaTrader 4
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