Trade Bitcoin Trading

Momentum Trends - Trade Parabolic Market Trends

What is Momentum Trend? A momentum trend is a trend that is stronger than the one before: we can see this trend with a steeper line than the previous one. When a new line is steeper than the last one, it means the trend has picked up more speed and is getting much stronger. These kinds of situations need a different way of looking at the market.

In the example below: Also when the price is moving upwards within a trading channel, if price breaks the upward channel a stronger market trend is formed like is illustrated in the diagram below. If as a trader your price chart breaks an up trend-line to the upwards side in an upward moving market like the one below, Don't Try to Sell, Buy More Contracts, Remember this Bitcoin trading tip it can make you a lot of money just like in the way it did in the trading analysis below.

Momentum and Parabolic Trends in Bitcoin: How to Trade Parabolic BTC Price Moves

Momentum Trend Channel Breakout Signals Strong Upward Market Moves

Applying the prior analysis example, we can also observe the formation of new, steeper trend lines, indicating that the prevailing market momentum is intensifying.

Bitcoin Momentum Trends - Trade BTC Parabolic Trends

Bitcoin Trading - Momentum Bitcoin Trends

This is indicated by steeper trend lines that can be drawn as market price movements unfold.

The new upwards trend is moving faster than the one before it, as we can see from the steeper shape of the trendline being formed.

A fresh trend builds lines B and C. The image below uses MT5 software. Momentum draws a sharper trend line on the Bitcoin price chart above.

Look at the example below with trend-lines A, B, and C. They show how setups build stronger trends as momentum grows.

Analyzing Momentum Trends in Bitcoin Trading - Strategies for Trading Bitcoin Parabolic Price Movements

Bitcoin Price Gaining More Upward Momentum

Short term Bitcoin traders, like scalpers and daytraders, can also use this plan. These trend lines can show where to start trades. A trader should follow the trend & only start trades in the direction of these momentum trends.

How to Trade These Momentum Trends Setups

The momentum trendlines are good analysis tools for figuring out where to set take profit early before other traders. This momentum trading setup occurs frequently on 1 minute, 5 minute and 15 minutes charts and therefore suitable for scalpers & day traders. For intraday trading which is most common chart time frame to use? - most common chart time frame for day trading is the 15 minutes sometimes the 5 minutes, e.g. after entering a short term trade such as a buy trade and the market moves some pips in your favor and you spot this pattern then it is best to open trades in direction of the momentum trendlines.

the Momentum Market Moves

Parabolic Trends - What's it?

Sometimes market prices move in a parabolic formation, & this is seen when panic buying sets in and price of Bitcoin is driven vertical. During a parabolic upwards move, there is almost a complete absence of sellers, which creates a vacuum of buying. When this occurs, traders dash just to get in to the market regardless of price, in fear of being left behind. This parabolic trends can make the biggest price moves in the shortest period of time, traders will just keep opening and placing buy orders in this setup.

For such trends, just keep buying without deep analysis.

Sometimes, a trend just keeps going for months or even years. As long as the weekly and monthly trend lines hold, keep buying. Don't overthink it.

When the steepest trend line is broken it is best to exit this buy trade and wait for another trade setup - either another buy trade or sell trade.

Parabolic Market Trend

As a trader if you come across a parabolic trend in an upwards trending market just keep buying and buying some more - you'll make a lot of profits, there will be no added analysis required just the trend lines. The only thing to remember is to get out once the steepest trend line is broken because the reversal on this trading setup can also be very fast you need to also be very quick. Just make sure you exit at the correct spot while trading this setup.

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