Cryptocurrency Break Out Strategy Indicators
With consolidation bitcoin trading patterns the btcusd cryptocurrency trading market can go in any direction after a bitcoin crypto price breakout. Consolidation patterns are used to identify break out patterns in bitcoin crypto currency charts. There are two different types of consolidation chart patterns which form on bitcoin crypto charts:
- Symmetric Triangles Patterns - Consolidation BTCUSD Crypto Patterns
- Rectangle Patterns - Range Bitcoin Patterns
Consolidation Trading Patterns
Symmetrical triangles are chart patterns with converging trend-lines that form a btcusd crypto price consolidation period that signals there going to be a btcusd crypto price breakout in one direction after this pattern breaks out in one direction. The bitcoin buy signal from a consolidation triangle is the upside bitcoin price break, while a down-side bitcoin price break is a bitcoin sell signal. Ideally, a the bitcoin crypto currency price breaks out from a consolidation chart pattern prior to reaching the apex of the triangle.
BTCUSD Crypto Trend-Lines bitcoin crypto currency trend-lines can be drawn by connecting the lows and highs of the consolidation pattern for the bitcoin crypto price, the trend lines formed are consolidation and converge to form an apex - consolidation triangle pattern. A btcusd crypto price breakout should occur somewhere between 60% - 80 % into the triangle consolidation pattern. An early or late bitcoin crypto currency break out is more prone to bitcoin crypto currency trading whipsaws, & therefore less reliable. After a bitcoin price breakout to one side the apex of the consolidation triangle forms the support and resistance levels for the bitcoin price. Bitcoin Crypto price that has broken out of the consolidation pattern shouldn't retrace past the apex. The apex is used as a stoploss setting level for the open trade transactions placed after a btcusd crypto price breakout.
When consolidation bitcoin patterns form we say that the bitcoin market is taking a break before deciding the next direction to take - this also signals an impending bitcoin price breakout - Cryptocurrency Break Out Strategy Indicators - Cryptocurrency Breakout Indicator - Indicator To Confirm Breakout.
These bitcoin consolidation patterns form when there is a tug of war between buyers and sellers and the bitcoin market can't decide which way to proceed.
Consolidation Chart Patterns - Crypto Break Out Strategy Indicators - Crypto Breakout Indicator
However, this consolidation chart pattern cannot go on forever - the chart examples below shows how the consolidation pattern eventually had a bitcoin price break out and moved in one direction.
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After btcusd crypto price consolidating, If bitcoin price breaks-out the upper line we open bitcoin buy trades, if bitcoin price breaks out the lower line we open-sell trades.
Range Pattern
A rectangle consolidation pattern is a trading range with narrow bitcoin crypto currency price action that develops in to a consolidation phase in btcusd cryptocurrency trading market. The bitcoin trading range is defined by 2 parallel bitcoin trend lines which are horizontal and these indicate the presence of support & resistance areas at this particular area. Range consolidation chart pattern is drawn on a trading chart using a rectangle, therefore the name rectangle bitcoin trading pattern.
For this bitcoin crypto currency consolidation chart pattern, bitcoin crypto currency price forms a series of highs & lows which can be connected with horizontal btcusd crypto trend lines which are parallel to each other. Range consolidation pattern forms over an extended period of time giving this chart pattern its rectangle shape.
A bitcoin crypto currency breakout of bitcoin crypto currency price action from this rectangle consolidation pattern forms when either of the horizontal line is penetrated & the btcusd crypto trading range of the rectangle btcusd crypto pattern setup is broken. An up side btcusd crypto price breakout is a buy btcusd crypto signal. A downside btcusd crypto price break out is a sell btcusd crypto trading signal.
Range Pattern - Cryptocurrency Break Out Strategy Indicators - Cryptocurrency Breakout Indicator - Bitcoin Indicator To Confirm Breakout
BTCUSD Crypto Price Breaks-Out of rectangle consolidation range after a period of time and bitcoin crypto currency price continues to move upwards after an upward bitcoin crypto currency price break out.
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