Where Should You Place Stop Loss Bitcoin Order using Support Level and Resistance Levels in Bitcoin Trading?
A trader can use support & resistance zones on the chart to figure out where to place their stop loss cryptocurrency orders using the methods explained on the illustrations below:
Setting Stop Loss Bitcoin Order using Resistance Zones
One way of setting stop loss cryptocurrency orders is to use resistance levels, on the bitcoin cryptocurrency charts.
Given that stop loss btcusd orders tend to crowd at key points, when one of the resistance zones is touched by the bitcoin price, other orders are set off.
Stop Losses tend to crowd just above the resistance levels.
A resistance area should act like a barrier for btcusd crypto price movement, this is why the resistance level are used to set stop loss orders.
If this resistance level is broken the bitcoin price movement can move towards the in the opposite market direction of the original btcusd trend, but if this resistance level isn't broken the bitcoin cryptocurrency price will continue going in intended direction.
Stop Loss Bitcoin Order Level Setting using Resistance Levels in Bitcoin
Setting Stop Loss Bitcoin Order above the Resistance Level
Setting StopLoss BTC/USD Crypto Order using Support Areas
Another way of setting stop loss crypto orders is to use support zones, on the bitcoin charts.
Given that stop loss bitcoin orders tend to crowd at key points, when one of the support zones is touched by the bitcoin price, other orders are set off.
Stop loss orders tend to crowd just below the support zones.
A support zone should be like a barrier for bitcoin price movement, this is why these support zones are used to set stoplosses.
If this support level is broken the bitcoin price movement can move towards the in the opposite trend direction of the original bitcoin trend, but if this support zone is not broken the btcusd price will continue heading and going in intended direction.
Stop Loss Bitcoin Order Level Setting using Support Zones in BTCUSD
Setting Stop Loss Bitcoin Order below the Support Level
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