Trade Bitcoin Trading

Bitcoin Price Action 1 2 3 method in the Bitcoin Trade Market

Bitcoin Price action is the use of only charts to trade Bitcoin, without use of trading chart indicators. When trading using this method, candlestick charts are used. This strategy uses lines and predetermined patterns like 1-2-3 pattern that either develops or series of bars.

Traders use this strategy because this trading analysis is very objective and allows the one to analyze & interpret the btcusd trading market movements based on what they see on the charts & market movement analysis alone.

This strategy is used by a lot of traders: even those who use technical indicators also integrate some form of bitcoin price action in their strategy.

Best use of this method is achieved when the signals generated are combined with line tools to provide extra confirmation. These line tools include bitcoin trend lines, Fibonacci retracement, support and resistance levels.

Bitcoin Price Action 1 2 3 Breakout

This trading strategy uses three chart points to identify the break out direction of bitcoin crypto. 1-2-3 technique uses a peak & a trough, these points forms point 1 & point 2, if the market crosses above the peak the signal is to go long, if it falls below the trough the trading signal is to go short. Breakout of point 1 or point 2 it it forms the third point.

Bitcoin Price Action 1 2 3 method breakout trading - Crypto Price Action Method

Series of breakouts on Bitcoin Chart

BTCUSD Price Action Method

Investors use bitcoin price action to try & predict where a bitcoin trend direction might go. The market is either trending or range bound.

A trending market heads in a particular direction while a ranging market moves sideways, generally after getting to a support or resistance area.

Observing the behavior of bitcoin price action provides this information of whether the btcusd market is trending or ranging or reversing its direction.

As with any other Bitcoin strategy this method should also be combined with other confirming indicators to avoid whipsaw signals. The 1-2-3 pattern formation can give good trading signals in a trending market but will give whipsaws when the btcusd trading market is range-bound, it is better to identify if the btcusd trading market is trending or not before you begin using this strategy.

Combining Together This Strategy with other Indicators

Good indicators to combine with are:

  • RSI
  • Moving Average Technical Indicator

Investors should use these two indicators to confirm if the direction of break out is in line with the bitcoin trend direction shown by these 2 indicators. If the direction also is the same as those of these trading indicators then traders can open a trade position in direction of the trade signal. If not investors should not open a trade as there's more likely a chance that this signal may be a bitcoin whipsaw.

Just like any other indicator in BTCUSD CryptoCurrency Trading, bitcoin price action also has whipsaws and there's a requirement to use this trading strategy as a combination together with other trading signal as opposed to just using this strategy alone.

Combining Together Bitcoin Price Action 1 2 3 Method with Indicators RSI and MAs - Bitcoin Price Action Method

Combining with other Indicators - RSI & MAs

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