How Do You Trade Breakouts in Bitcoin Crypto Currency
With consolidation bitcoin trading patterns the btcusd market can head in any direction after a bitcoin price breakout. Consolidation patterns are used to identify break out patterns in bitcoin charts. There are two different types of consolidation trading patterns which form on btcusd cryptocurrency charts:
- Symmetric Triangles - Consolidation Bitcoin Patterns
- Rectangles - Range Bitcoin Patterns
Consolidation Patterns
Symmetric triangles are chart patterns with converging trend lines that form a bitcoin price consolidation period that signals there's going to be a bitcoin price breakout in one direction after this chart pattern breaksout in one direction. The bitcoin buy trade signal from a symmetrical triangle is the up side bitcoin price break, while a down-side bitcoin price break is a bitcoin sell trading signal. Ideally, a the bitcoin price breaks out from a consolidation chart pattern prior to and before reaching the apex of the symmetrical triangle.
Bitcoin Trend-lines bitcoin trend lines can be drawn by connecting/joining these lows & highs of the consolidation pattern for the bitcoin price, the trend lines formed are symmetric and converge to form the apex - symmetrical triangle pattern. A bitcoin price breakout should occur somewhere between 60% - 80 % into the triangle consolidation chart pattern. An early or late bitcoin breakout is more prone to bitcoin whipsaws, & thenceforth less reliable. After a bitcoin price breakout to one side the apex of the symmetrical triangle forms the support and resistance levels for the bitcoin price. BTCUSD Crypto price which has broken out of the consolidation pattern should not retrace past the apex. The apex level is used as a ==22==stop--lossstop--loss--orderstoploss--order setting level for the open trade positions set after a bitcoin price break out.
When bitcoin consolidation patterns occur we say that the bitcoin market is taking a pause/break before deciding the next direction to take - this also signals an impending bitcoin price breakout - How to Trade Breakouts In Crypto Currency - How to Identify Break Out Pattern - Break Out Strategy Bitcoin.
These bitcoin consolidation patterns form when there's a tug of war between buyers & sellers and the bitcoin market can't decide which way to continue.
Consolidation Crypto Patterns - How to Trade Breakouts In Crypto - How to Identify Break Out Pattern
However, this consolidation chart pattern can't go on forever and just like in the game of tug of war one side eventually wins, the btcusd chart examples below shows how the consolidation pattern eventually had a bitcoin price break out and moved in one direction.
How Do I Identify Break out Pattern - Break Out Strategy Crypto Currency - Break Out Strategy Course - The Complete Breakout Trader Lesson Guide
How Do I Identify Break out Pattern - Break Out Strategy Crypto - Break Out Strategy Course - The Complete Breakout Trader ==22==Lesson--GuideGuide--LessonLesson
After bitcoin 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.
How to Identify Bitcoin Break out Pattern
A rectangle consolidation chart pattern is a trading range with narrow bitcoin price action that develops and forms into a consolidation period phase in btcusd market. The bitcoin trading range is defined by two parallel bitcoin trend lines which are horizontal & these indicate the presence of support & resistance areas at this particular area. Rectangle consolidation chart pattern is drawn on a btcusd chart using a rectangle, therefore the name bitcoin rectangle bitcoin chart pattern.
For this btcusd crypto consolidation pattern, bitcoin price makes a series of highs and lows which can be connected with horizontal bitcoin trend lines which are parallel to each other. Rectangle consolidation pattern forms over an extended period of time giving this bitcoin pattern its rectangle shape.
A bitcoin breakout of bitcoin price action from this rectangle consolidation pattern occurs when either of the horizontal line is penetrated & the bitcoin trading range of the rectangle bitcoin pattern is broken. An up side bitcoin price break out is a buy bitcoin signal. A down side bitcoin price breakout is a sell bitcoin trade signal.
How Do You Trade Breakouts In Crypto Currency - How to Identify Break Out Pattern - Break Out Strategy Bitcoin
Bitcoin Price Breaks-Out of the rectangle consolidation range after a period of time and bitcoin price continues to move upwards after an upwards bitcoin price break out.
How Do You Trade Breakouts In Crypto Currency - How to Identify Break Out Pattern - Break Out Strategy Crypto Currency - Break Out Strategy Course - The Complete Breakout Trader Lesson Guide
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