Trade Bitcoin Trading

Upward Trend-lines & Channels

An upwards bitcoin trend line is drawn below the bitcoin trend pattern by joining at least 2 lows. This upward bitcoin trend line will draw a line that show the over-all direction of the market.

The diagram below shows how bitcoin price moves when it's moving in a bullish market. The bitcoin price will move up-ward forming support regions.

Since the btcusd market moves in a zig-zag manner bitcoin traders normally draw a bitcoin trend line which displays the general upwards direction of the market.

Upward Bitcoin Trend Line MT4 Bitcoin Trendline Indicator - Technical Bitcoin Trend Analysis

A up bitcoin trend occurs when the fore bitcoin market will continue to make and form consecutive higher highs and higher lows. Each price high is going to be higher than the prior high - higher high, & each low is higher than the prior low - higher low.

Up trend-lines gain more validity each time bitcoin price touches this upward bitcoin trend line but doesn't penetrate it. A up bitcoin trend remains in play until this sequence of higher highs and higher lows is broken.

A down-side penetration of an up-ward bitcoin trend line is a technical sell bitcoin signal, & normally the first indication that an up-ward bitcoin trend may soon end.

Drawing an Upwards BTCUSD Trend Line

When the btcusd market moves upwards it forms higher highs & higher lows forming a bullish market movement - Upward Bitcoin Trend. An upward btcusd trend line then can be drawn by connecting/joining these higher lows.

To draw this upward btcusd crypto trend-line setup we use supports. To draw the upward bitcoin trend line correctly two support zones are needed. When bitcoin price touches the up-ward bitcoin trend line we buy and place stop loss cryptocurrency orders just a couple of pips below the upward bitcoin trend line. The diagram below shows an example of an upward bitcoin trendline.

drawing an Upward Bitcoin Trend Using Line Support Levels - MT4 Trend-Line Indicator Example Explained

The crypto upward bitcoin trend line setup will show the general market direction of the price as bullish therefore bitcoin traders will only open buy long cryptocurrency trade positions as long as bitcoin price is within this upward bitcoin trend bullish market setup & within the support areas. These support levels are the levels where if the btcusd market retraces then these points will offer strong supports for the bitcoin price. This is why many buyers will wait til bitcoin price retraces downwards & hits these retracements levels market the upward bitcoin trend line to open buy cryptocurrency trades. Bitcoin trades opened at this support levels have a high Risk to Reward Ratio with minimum draw down.

In the above up-ward bitcoin trend line cryptocurrency setup the trader would have opened buy/long cryptocurrency trades from the trade signals generated at the support1, support2, support3 & these cryptocurrency trades would have made a lot of profits with minimum amount of drawdown.

Upward Channel

An upward channel is drawn by plotting a line which is parallel to the upward bitcoin trend line & then adjusted to touch the tops boundary of the bitcoin price movement. This then forms an up-ward crypto channel and as long as the bitcoin stays in between these two channels the bullish market movement will continue heading upward.

Upward Bitcoin Channel - MT4 BTCUSD Trendline Indicator Example Explained

Trading the Crypto Channel

This upward channel is used by cryptocurrency traders to show levels where it's best to take profits. Traders will take some profit once the bitcoin price tests/touches the upper channel and wait out for another retracement before opening a long buy bitcoin trade again.

Bitcoin Trendlines MT4 Bitcoin Trend Line Indicator

The MT4 Bitcoin Trendline Indicator drawing tools to draw these bitcoin trend lines and channels setups on the MT4 are located on the MetaTrader 4 drawing tool bar within the MT4 software, To access this MT4 tool bar if it's not activated in your btcusd crypto platform, Press in 'View' Next to the 'File' menu at top left corner of MT4 platform software & click View, Then Click in Tool Bars, Then Tick the 'Lines ToolBar' by clicking on it.

Shown Below is the screenshot Image of the MetaTrader 4 drawing tool bar. To draw a bitcoin trend-line on a trading chart just click this MT4 bitcoin trend line drawing tool and choose the point where you as the trader want to draw the bitcoin trend line.

MT4 Tools for Drawing Bitcoin Trend lines and Bitcoin Channels - MT4 Trend-Line Indicator Explained

This is one of the learn cryptocurrency technical analysis lesson among the many learn bitcoin tutorials on this website located on the side navigating menu, where you will learn how to draw bitcoin trend lines & analyze these bitcoin trend lines setups.

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