Where to Buy

You should know the right time to start a buy order: just because the btcusd trading market is going up and bitcoin prices are rising doesn't mean you should buy at any random time. You need to learn the skill of knowing when to buy.

Imagine the btcusd market in a bullish phase. You decide to buy just as Bitcoin prices peak, appearing overwhelmingly bullish to the point of creating an illusion of an unstoppable uptrend. Fearing you might miss out, you make the purchase. However, moments later, the btcusd market retraces sharply by 200 pips. This is not the art of how to buy. Even if the btcusd market goes up & the btcusd market price returns to where you bought you are still not in profit, you have done zero work and you've just wasted your time. You need to know where to buy at the best bitcoin price & at the best time so that as the btcusd trading market does not retrace on you just when you've bought.

The chart below marks an uptrend in BTCUSD. It shows where most traders buy. They enter when the rise seems plain. Skip that. Buy on pullbacks when the trend dips. The example highlights such a buy.

The trick to this kind of buying is that you buy after a pullback, so even if the bitcoin price doesn't go up right away, the market pullback will already be partly or mostly done, so instead of you starting a buy order that pulls back 200 pips like if you bought at the peak, you buy after a pullback, so even if the bitcoin price were to pull back on you, it will only pull back a little, and once the bitcoin trend starts up again, you'll earn money much faster.

For instance, if you buy after the price of bitcoin has fallen back 150 points when the total fall is 200 points, your buy position will only fall back on you by 50 points instead of 200 pips. By the time the bitcoin price begins to rise again and moves up 200 points to overcome the market fallback, you'll already be 150 points in profit, saving time and earning money on the market fallback by entering at the best moment. This is how to buy if you want to earn money trading in a rising market.

The example illustrated below shows where to not to buy and where to buy after a retracement, the buy was quickly confirmed by the moving average which started to move up & RSI went to above the 50 center line mark. Buying here after the price retracement shows as a bitcoin trader your position did not have a lot of draw-down and you begun to make money immediately henceforth making this a low risk trade.

Where to close-out buy orders

Knowing where to buy also means knowing where to close you orders & take profit.

For the above setup we will be using the RSI over-bought signal. Once the RSI goes above 70 & then close below this technical level we shall consider this as a sell cryptocurrency signal and we shall close out all open buy orders.

Wait for the next pullback. Then open another buy trade after it, and repeat the plan.

We will take a screenshot of this trade to demonstrate where to close the orders once the btcusd market rises, as this trade occurs in real-time when this article is being written.

Where to buy again

Because the bitcoin trend is upwards and we only buy after a retracement then as a buyer you'd have waited for the setup to buy again and this is after a price retracement.

This would have been the best place to buy, as this is the level where the prevailing market is oversold.

You also can wait for confirmation of the above signal like is shown below:

Buy trade set-up confirmed

What if a Trader Buys and The Retracement Continues Downward?

This is a good point: what happens if the place you buy is not where the market stops falling, and the price keeps dropping?

This trade did exactly that, retracing 200 points down from our buy point, as illustrated below.

So the first thing to know is that this is an upward bitcoin trend & the price retracement has moved 671 pips from the top but using our strategy we've been caught by only 200 pips(points) instead of the 671 pips. This is the first reason why you should not buy at the top & instead wait for a retracement then buy. That way you'll only be caught by a fraction of the market retracement & not the whole retracement, therefore saving you from a lot of drawdown on the position.

The next step is that because you will not be over leveraging your positions you will still have enough money to absorb the drawdown. You will then open a new trade position after this retracement begins to move upwards like illustrated above.

From above trade setup our newly opened trade position went upwards by 70 points immediately after opening this trade. As a trader you will need to close-out these new trade positions at the earliest times so that as you can reduce your risk and at the same time book some profit amidst all the retracements happening.

For this trade, set take profit at 1144. Or watch the Bitcoin chart and exit if momentum fades.

We shall take a screen shot of this trade after the btcusd trading market bitcoin trend has developed.

The buy signal for bitcoin came after consolidation. Both moving averages point up now. RSI sits above 50. A short downtrend line broke, confirming the move.

As a trader, you can observe that by employing our strategy, we have successfully minimized our drawdown, even in the face of the short-term downward trend of btcusd. If the btcusd trading market rises to the level of our initial trade transaction, we will have increased our account's profit. The reason for this added profit will not stem from our ability to perfectly time the btcusd market, but rather from our entry into the btcusd market at a time when the likelihood of drawdown is significantly low. This indicates that our risk-reward ratio is sufficiently high to allow us to derive a profit from the bitcoin market utilizing this trading strategy.

The area here is where you end your trade: always stop while you're winning and wait to buy after a small pullback.

Close the trade now. The BTCUSD market looks overbought. Set a buy limit and wait for tomorrow.

According to our chosen trading approach, the optimal placement for a buy limit order would be at 1123, 1122, or 1121, just above the 1120 mark.

Just in case there's a continuation of this bullish upwards market, we also set buy stop pending order at 1136 just above most recent high that way our buy bitcoin trade will still be opened either way.

The thing to remember is retracement before buying - the aim is to first reduce any amount of draw-down before starting to chase profit.

The next thing you have to be sure with this strategy is that the current long term bitcoin trend is upwards, that way you're trading with the bitcoin trend - you as a BTCUSD trader can use moving average cross-over method on the weekly chart to do this.

The same concept of retracement before sell can be used to open sell cryptocurrency trades when in a downward bearish trending market.

Study More Guides and Courses:

• How to Select Automated CryptoCurrency Trade Robots
• How Do You Add Trading Linear Regression Indicator on Chart?
• How Do I Analyze Chart Price Upward Trend?
• BTC USD Mini Account
• BTC/USD Indicators Trade Strategies
• How Do I Register a MT4 BTCUSD Account?
• How Do I Interpret a Sell Stop BTC USD Order & Sell Limit BTC USD Order?
• Parabolic SAR Combination of BTC/USD Indicators
• BTC USD MetaTrader 4 Chart Templates Different BTC USD Strategies Templates Examples
• Acceleration/Deceleration AC BTC/USD Indicator