Consolidation Trading Patterns
With consolidation chart patterns the btcusd crypto market can go in any direction after a bitcoin crypto price breakout. Consolidation chart patterns are used to identify breakout patterns in bitcoin charts. There are two different types of consolidation chart patterns which form on bitcoin crypto charts:
- Symmetric Triangles Patterns - Consolidation BTC USD CryptoCurrency Patterns
- Rectangles - Range Bitcoin Patterns
Consolidation Trading Patterns
Symmetric 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 break out in one direction after this pattern breaks-out in one direction. The bitcoin buy signal from a consolidation triangle pattern setup is the up side bitcoin price break out, while a down side bitcoin price break out is a bitcoin sell signal. Ideally, a the bitcoin crypto price breaks out from a consolidation pattern prior to reaching the apex of the symmetrical triangle.
Bitcoin Crypto Currency Trend lines btcusd crypto trend lines can be drawn by joining these lows & highs of the consolidation pattern for the btcusd crypto price, the bitcoin trend lines formed are symmetric & converge to form the apex of a symmetric triangle - consolidation triangle pattern. A btcusd crypto price breakout should occur somewhere between 60% - 80 % into the triangle consolidation chart pattern. An early or late bitcoin cryptocurrency break out is more prone to bitcoin cryptocurrency whipsaws, & hence less reliable. After a bitcoin price breakout to one side the apex of the consolidation triangle chart pattern forms the support & resistance levels for the bitcoin price. Bitcoin price that has broken out of the consolidation chart pattern shouldn't retrace past the apex. The apex is used as a stoploss setting level for the open trade transactions placed after a bitcoin price breakout.
When consolidation bitcoin patterns form we it signals an impending bitcoin price break out once bitcoin price breakout and moves out of this consolidation chart pattern - How to Trade Breakouts In Crypto Currency - How to Identify CryptoCurrency Break Out Pattern - Crypto Break Out Strategy Bitcoin.
The consolidation bitcoin patterns form when there's a tug of war between buyers and sellers and the bitcoin market can't decide which way to proceed.
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However, this consolidation chart pattern can't go on forever - the btcusd 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 bitcoin cryptocurrency price consolidating, If bitcoin price breaks the upper line this is a buy bitcoin signal, if the btcusd price breaks the lower line then this is a sell bitcoin trading signal.
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A rectangle consolidation chart pattern is a range with narrow btcusd crypto price action that develops and forms in to a consolidation phase in bitcoin crypto trading market. The range is defined by 2 parallel btcusd trend lines which are horizontal and these indicate the presence of support zones & resistance areas at this particular area. Rectangle consolidation pattern is drawn on a crypto chart using a rectangle, therefore the name btcusd rectangle bitcoin trading chart pattern.
For this bitcoin consolidation chart pattern, btcusd crypto price forms a series of highs & lows which can be joined with horizontal bitcoin trend-lines which are parallel to each other. Rectangle consolidation pattern forms over an extended period of time giving this btcusd crypto setup its rectangle shape.
A bitcoin cryptocurrency breakout of bitcoin cryptocurrency price action from this rectangle consolidation pattern forms when either of the horizontal line is penetrated and the bitcoin cryptocurrency range of the rectangle cryptocurrency setup is broken. An up side bitcoin price break out is a buy crypto signal. A down side bitcoin cryptocurrency price breakout is a sell bitcoin signal.
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Bitcoin Crypto Currency Price breaks out of the rectangle consolidation range after a period of time & btcusd crypto price continues to move upward after an upwards btcusd crypto price breakout.
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