Bitcoin Indicators for Setting StopLoss Orders in Bitcoin Crypto Currency Trading

Some chart indicators are used for setting stop loss orders taking away the need for BTC/USD Crypto traders to perform complex calculations on where to place these stop loss orders.

One using systems can also place a stop loss order according to these chart indicators. Some indicators use mathematical calculations to calculate where the stop loss order should be set so as to provide an optimal exit. These chart indicators can be used as the basis for setting stop loss orders when it comes to BTCUSD trading. These chart indicators follow price action of Bitcoin BTCUSD price chart closely and define the boundaries which the BTCUSD price should move along in. When the BTCUSD moves outside these boundaries it's thence best to close-out the open BTCUSD Bitcoin trades as price momentum may stop moving in that particular direction.

Some of the Technical indicators that can be used to set stoploss orders are:

Parabolic SAR Trading Indicator

Parabolic SAR is used to set a trailing price stop loss when trading Bitcoin Crypto Currency cryptocurrency online

Parabolic SAR technical indicator provides excellent points to exit placing stop losses.

In an upwards trend, you should close long positions when the price falls below the parabolic SAR
In a downward trend, you should close short positions when the price rises above the parabolic SAR Indicator

If you are in a long position then the price of Bitcoin should be above the parabolic SAR, the parabolic SAR trading indicator will move up each day, regardless of the direction in which the BTCUSD price is moving. The amount that the parabolic SAR moves up depends on the amount that BTCUSD prices moves.

Bitcoin Indicators for Setting StopLoss Orders in Crypto Trading - Exit Signals and Settings Stop Loss Levels

Parabolic SAR - Technical Chart Indicator

Parabolic SAR indicator & how it is used for setting stop loss orders

Bollinger Bands

Bollinger Band indicator uses standard deviations as a measure of the market volatility. Since standard deviation technical indicator is a measure of the market volatility, the Bollinger bands are self-adjusting meaning that they widen during periods of higher volatility and contract during periods of lower market volatility.

Bollinger Band indicator consists of 3 bands that are designed to enclose/encompass the majority of a instruments price action. The middle band is a basis for the intermediate term market trend: often it's a 20-period simple moving average, which also serves as the base for the upper & lower Bollingers. The distance of the upper band the lower band from the middle band is determined by volatility of the Bitcoin price movement. Since these Bollinger bands are used to encompass the BTCUSD trading instrument price action, the bands can be used to set stoploss orders just outside the area of these bands.

Technical Bitcoin Indicators Used for Setting Stop Losses in Crypto Trading - Indicators for Setting BTCUSD Stop Losses

Bollinger Bands Indicators Setting StopLoss Level in BTCUSD Price Chart

Fib Retracement Levels Technical Indicator

Fib retracement levels also provide areas of support & resistance, these areas can be used to set stop loss levels when trading BTCUSD Crypto.Fibonacci Retracement level 61.8 % is the most often used level for setting stoplosses. A stop loss order should be set just below Fibonacci retracement level 61.80%.

The 61.8 % Fib retracement level is used to set these stop loss order orders since this retracement level is rarely hit.

Technical Bitcoin Indicators Used for Setting Bitcoin Stop Losses

Fib Retracement Levels Chart Indicator Stop Loss Setting at 61.8 % Retracement Level

Fib retracement level 61.8% used to set stop orders in BTCUSD trading.

Support and Resistance Levels Lines

Support & resistance areas is another technical chart technical indicator which can be used to set stoploss order levels where the stop loss orders are set just above/below the support or resistance levels.