Trade Bitcoin Trading

Crypto Indicators That Are Used for Taking Profit

Bitcoin Buy Sell Indicators & Bitcoin Exit Indicators

Once traders have mastered navigating the BTCUSD market using analytical indicators that generate signals indicating either bullish or bearish momentum - derived from a combination of trend-following and trend-confirmation indicators for Bitcoin - they must then understand the indicators necessary for determining optimal take-profit levels and exit points for active trades (Bitcoin Exit Indicators). These Exit Indicators are employed to precisely calculate where to place a take-profit order subsequent to a trade's initiation. Furthermore, EA practitioners can leverage these indicators to program Automated Stop Loss Bitcoin Orders and Take Profit Bitcoin Order Expert Advisors (EAs) for the MT4 platform.

There are different types of indicators that can be used as Bitcoin Exit Indicators to help figure out when to take your profit. You need to understand these indicators to know when to take profit and close a trade.

Bitcoin Exit Indicators

Before learning about the various bitcoin take profit indicators available in the btcusd market and on the MetaTrader 4 platform software, bitcoin traders need to know and learn about overbought & oversold levels.

These overbought and oversold levels are used as bitcoin profit booking levels & this overbought & over-sold market analysis will be used to interpret when to close-out open positions.

Overbought Level - overbought levels on indicators is when bitcoin price is above the 80 mark for crypto indicators such as RSI & Stochastic. One will close open buy trade positions once the trading indicator is in the overbought region. The trader won't close the open bitcoin trade immediately after the indicator is overbought but when the indicator leaves this overbought level and moves back below the 80 mark.

Oversold Level - When bitcoin's price goes under a level of 20 based on crypto tools such as RSI and Stochastic Oscillator, it's called being oversold. A trader will end any open trades where they're selling once the tool shows it's in this oversold spot. The trader does not end the open bitcoin trade the moment the tool is oversold but later when the tool is no longer oversold and goes back over the 20 level.

CryptoCurrency Indicators Defined with Examples

Bollinger Band - traders use the upper and lower Bollinger bands to find the price points for setting their take-profit levels on open trades.

Parabolic SAR - The Parabolic SAR indicator helps find bitcoin trends and puts dots under the bitcoin price when the bitcoin trend goes up and puts dots over the bitcoin price when the trend goes down. These dots follow the bitcoin price - when the bitcoin trend goes up, the dots follow below and can show where to end a bitcoin buy - these are Bitcoin Exit Indicators. When the bitcoin trend goes down, the dots follow above the bitcoin price and can show when to end open sell trades.

BTCUSD Fibonacci Expansion - This tool is used to figure out where to take profits, and traders can use it to decide where to place their orders to take profits on cryptocurrency trades.

Beginner traders can deepen their knowledge of technical indicators like Fibonacci Expansion in the introductory lessons section. Additionally, Bollinger Bands and Parabolic SAR indicators are detailed within the specific indicators and strategies guides available on the learning platform.

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