How Do You Trade a Bitcoin Downtrend
Down Bitcoin trend is when the bitcoin price of a chart is moving lower and lower. CryptoCurrency btcusd cryptocurrency currency prices in general close lower than where they opened.
How to Trade Downward Bitcoin Trend: Bitcoin traders use the downwards bitcoin trend direction to open sell trade bitcoin trades
Drawing a Downward Bitcoin Trend Line
In learning how to draw a downwards bitcoin trend line, you need to know that when the btcusd trading market is bearish it forms lower lows and lower highs forming a downward general bitcoin trend direction - downwards cryptocurrency trend. These are the points that are used to draw a downwards bitcoin trend-line.
To draw downward bitcoin trend setup we use resistance areas and to do it correctly two resistance areas are needed. When bitcoin price touches this downward bitcoin trend line, then we open sell cryptocurrency trade transactions & place stop loss order just a couple of pips above the sloping resistances:
How to Trade a Downtrend? - Strategy for Trading/Transacting a Bitcoin Downwards Trend
Trading This Down Bitcoin Trend Market Move
When trading with this down bitcoin trend method, this downward bitcoin trend setup will show the general direction of the market as downwards therefore bitcoin traders will only open short sell cryptocurrency trades. These resistance levels are the levels where if bitcoin price retraces then these points will give strong resistance. This is why many sellers will wait til bitcoin price retraces upward and hits these retracements levels to open sell cryptocurrency trades. Trades opened at these technical levels have a high Reward : Risk Ratio and have little draw-down.
For Example, in the above downwards bitcoin trend example, a trader would have opened short sell bitcoin trading signals at the resistance 1, resistance 2, resistance Three and these sell cryptocurrency trade transactions would have been opened with a minimum amount of draw down/retracement.
How to Draw a Down-wards Bitcoin Channel
A downwards channel is drawn by plotting a line which's parallel to the downward bitcoin trend line & then adjusting so that it touches the bottom boundary of the bitcoin price movement. This then forms a channel and as long as the bitcoin stays between these 2 channels the general market down bitcoin trend direction is intact the btcusd trading market move direction will continue being bearish.
How Do I Draw Downward Channel - Crypto Downward Trend Method
Trading the Downwards Bitcoin Channel
The downwards channel is used by cryptocurrency traders to show levels where it best to take profit orders. Traders will book some profit once the bitcoin price touches the lower channel or the lower channel and wait for another retracement before opening a short sell bitcoin trade again.
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