Learn Bitcoin Trading Courses
Bitcoin is one of the largest financial market in the world. Bitcoin traders invest in the btcusd trading market popularly known as Bitcoin for speculation purposes. Bitcoin traders are attracted to bitcoin trading because of the following reasons:
Bitcoin Trading Leverage - bitcoin trading leverage means that traders can make more money in bitcoin trading by investing little of their own capital. This is because traders can borrow money to trade with from their crypto broker using cryptocurrency trading leverage.
Liquidity - The fact that bitcoin trading is one of the largest financial market in world means that there are very many traders trading the btcusd trading market at any time of the day or night during the btcusd trading market week. The fact that there are many traders investing in this market make the btcusd trading market a very liquid market meaning trader can open and close trade in a matter of seconds.
Low Transaction Cost - Because in bitcoin trading there are many traders trading at any one given time means that trade costs are lower because of this big volume of trades taking place in btcusd trading market. The only transaction cost paid by the trader is the spreads; no other cost is paid by the cryptocurrency traders. The spread is also only when a trader opens a trade: therefore if a trader does not trade then they do not pay any cost.
This learn bitcoin trading tutorial presents the various bitcoin trading education courses that technical traders or traders who want to learn technical analysis can learn from. After traders have learnt the basics of bitcoin trading it's then time to learn more about technical analysis topics that they can use to trade with.
The cryptocurrency trading technical analysis lessons can guide beginners on how to study the various technical analysis concepts.
Basics of Bitcoin Trading Analysis
Candle Bitcoin Charts
For technical traders the basic technical analysis tool that they use is the crypto chart. There are three types of crypto charts: line cryptocurrency charts, bar crypto charts & candle cryptocurrency charts. The type of cryptocurrency chart most commonly used by bitcoin traders is the candlestick crypto chart. This is because the candlestick cryptocurrency chart has a visually appealing format that clearly represents the movement of bitcoin prices, by displaying different colors for different movements; that blue color when bitcoin prices close higher than they opened or red color that represents when bitcoin prices close lower than they open. In addition these candlesticks show the distance between the open and close bitcoin price and this forms the body of the candlestick. This body of the candlestick is looks similar to the wax part of a real candle. The highest point of the bitcoin price will be drawn with what is known as a shadow, the shadow is a thin poking line that is drawn above the candlestick and it looks similar to the wick of a real candle. There is also another shadow drawn below the candlesticks and this one represents the lowest point of the bitcoin price.
The information drawn by the candlesticks is known as OHCL - which represents Opening bitcoin price, High, Low and Closing bitcoin price.
Japanese candlesticks were created in Japan by a traditional rice trader who used to trade futures, his name was Homma Munehisa, he later moved to trading the Tokyo cryptocurrency market that was in 18th Century & he made a fortune trading the Tokyo cryptocurrency market using these candles: He is said to have made over 100 consecutive winning trades.
In addition to showing the graphical representations of bitcoin price traders also use candlestick patterns to gauge and determine the strength of the bitcoin price movement. Bitcoin traders also study these candlestick patterns so as to learn how to interpret and trade signals from the various candlestick patterns. Bitcoin traders wanting to about the various candlesticks patterns can learn from our bitcoin trading section under the technical analysis topics, the various candlestick patterns used to trade Bitcoin are:
1.Long and short Candlesticks
2.Spinning Tops & Doji Candlesticks
3.Hammer Bitcoin Candle Pattern & Hanging Man Cryptocurrency Candle Pattern
4.Inverted Hammer Bitcoin Candle Pattern and Shooting Star Cryptocurrency Candle Pattern
5.Piercing Line Bitcoin Candle Pattern & Dark Cloud Cover Cryptocurrency Candle Pattern
6.Morning Star Candlesticks, Evening Star Candlesticks and Engulfing BTCUSD Candlesticks Patterns
Support & Resistance Areas
Some traders also refer to these levels as support and resistance lines. Concepts of support & resistance levels refers to bitcoin price zones where it is difficult for the bitcoin price break through & move beyond these levels.
At these levels traders are likely to perceive the bitcoin price of the bitcoin instrument as being cheap or being expensive.
Support
Support prevents the bitcoin price of an asset from getting pushed downward. Support levels are therefore regarded as the floor because these bitcoin price levels prevent the btcusd trading market from moving bitcoin prices downwards past a certain point.
Resistance
Resistance prevents the bitcoin price of an asset from getting pushed upward. Resistance levels are therefore regarded as the ceiling because these bitcoin price levels prevent the btcusd trading market from moving bitcoin prices upwards.
Therefore, these levels may be used by trader to determine where to open trades at the points where there is a high risk: reward ratio. For example a trader may open a buy bitcoin trade at a support level and place a stop loss a few pips below that level. The trader buys at this point because they perceive the bitcoin price to be cheap. A trader may open a sell bitcoin trade at a resistance level and place a stop loss a few pips above the resistance level. The trader sells at this point because they perceive that at that point the bitcoin price is very expensive and therefore there will be less people willing to buy bitcoin because the bitcoin price is very expensive and therefore the bitcoin price is likely to start moving down soon rather than continue to move upwards.
BTCUSD Trend Lines
Bitcoin Trend lines are used to determine the general direction of the market.
Sometimes support & resistances are formed diagonally in a similar way like a staircase. This forms a trend, a bitcoin trend is a sustained movement in one direction either upwards or downwards.
A bitcoin trendline depicts these points of support & resistance for the bitcoin price.
Bitcoin Trend line is an aspect of technical analysis that uses line studies to try and predict where bitcoin price will move next.
A bitcoin trend line is a straight diagonal line that connects two or more bitcoin price points and then extends into the future to act as line of support or resistance.
Bitcoin Trendlines are based upon the idea that markets move in trends. Bitcoin Trend-lines are used to show 3 things.
- The general direction of the bitcoin price movement up or down.
- The strength of the current bitcoin price movement and
- Where future support and resistance of the current bitcoin price movement are likely to be located.
If a bitcoin trendline forms in a certain direction then bitcoin price usually move in that direction for a period of time until a time when the bitcoin trend line breaks-out.
Upward bitcoin trend line - If bitcoin price is moving up then a line is formed that is also moving up. This line is called an upward bitcoin trend line.
Downward bitcoin trend line - If bitcoin price is moving down then a line is formed that also moves down. This line is called a downward bitcoin trend line.
Moving Averages BTCUSD Trading Technical Indicator
Moving averages are also used in bitcoin trading to determine the general direction of the market. Moving average is a bitcoin trend following technical indicators that is used to show the direction of the market.
The most common trading method of determine the direction of the bitcoin trend is by using two moving averages to form the moving average crossover bitcoin system. Moving average cross-over cryptocurrency trading system is covered in our bitcoin trading strategies section. The moving average crossover system is made up of two moving averages one with a lower period and the other with a higher period, for example a trader may use the 5 period moving average and the 7 period moving average, when bitcoin price is moving up the two moving averages will also be moving up and when bitcoin prices are moving down the two moving averages will also be moving down. Traders can also identify when a bitcoin trend changes its direction because the two moving averages will cross over each other once there is a change in direction of the bitcoin price movement. This crossover signal is used by cryptocurrency traders to determine when to open a new trade after the crossover signal has been generated and the two moving average start to move in the same direction. This crossover signal is also used to determine when to close a trade and take profit after there is a crossover in opposite direction.
Bollinger Band Technical Indicator
Bollinger bands is a very popular cryptocurrency indicator, it is also a bitcoin trend following technical indicator and it is used to show the general bitcoin trend of the btcusd market. Bollinger band is made up of 3 lines, these are:
·Middle band - this is a moving average of 20 bitcoin price periods
·Upper Band -shows upper limit of bitcoin price
·Lower Band - shows lower limit of bitcoin price
The middle band will show the general direction of the bitcoin trend whether up or down.
The upper band is where a trader will open a sell bitcoin trade if the btcusd trading market bitcoin trend is down or close their buy bitcoin trade and take profit at this level if the btcusd trading market is trending upwards.
The lower band is where a trader will open a buy bitcoin trade if the btcusd trading market bitcoin trend is up or close their sell bitcoin trade and take profit at this level if the btcusd trading market is trending downwards.
Bitcoin Trading Fib Retracement Areas
Fibonacci retracement levels are popularly used to determine the levels where bitcoin price retracements are likely to go up to. Bitcoin traders use these retracement levels to determine where to open trades after a bitcoin price retracement.
Fibo retracement levels are covered in the learn bitcoin tutorials section of this website under the technical analysis topics. Trader can learn how to use the Fibonacci retracement levels, which levels are commonly used to open trades and how to draw these retracement levels using Fibonacci retracement indicator.
All these technical analysis methods are also covered on the bitcoin trade strategies section of this learn bitcoin trading tutorial site and trader can learn more about these concepts & get example of these concepts are used in trading from this bitcoin trading strategies section that has numerous screenshots illustrations of these technical tools and how they are drawn on crypto charts along with explanation of they are used to generate bitcoin signals.
