How Do I Draw Bitcoin Trend Lines Correctly?
Bitcoin Trading How to Draw Bitcoin Trend Lines Correctly - Detailed Guide on How to Draw Bitcoin Trend Lines Correctly
Principles of How to Draw Bitcoin Trend Lines Correctly
Use bitcoin trading candlestick charts
- The areas which are used to plot are along the lows of bitcoin trading price bars in a bullish bitcoin market. An upwards bullish btcusd crypto trend is defined by higher highs & higher lows.
- The points used to plot are along the highs of the bitcoin trading price bars in a bearish bitcoin market. A downwards bearish btcusd crypto trend is defined by lower highs and lower lows.
- The points used to draw bitcoin trendlines are extreme points - the high or the low bitcoin trading price. These extremes are critical because a close beyond these extreme tells bitcoin traders the bitcoin trend might be changing. This is an entry or an exit bitcoin crypto currency trading signal.
- The more often a bitcoin trendline is hit but not broken, the more powerful its bitcoin crypto trend signal.
Example 1: How to Draw Bitcoin Upward Bitcoin Trendline Correctly
To draw an up-wards bitcoin trend line correctly use 2 support points in a bullish upwards bitcoin trend so as to plot the upwards bitcoin trend-line & then extend the bitcoin trend-line as illustrated below. Upwards bitcoin trendline will show the general direction of bitcoin trading prices & as long as bitcoin trading price is above this upward bitcoin trend-line then the upwards bitcoin trend will remain intact - bullish upwards trend.
If bitcoin trading prices move below the upwards bitcoin trend-line which is the support level for the bullish upwards bitcoin trend then traders should close out all their open trade positions - because this might be a market trend reversal. In an upward bitcoin trend trading price should generally stay above the support area which is marked by the upward bitcoin trend line.
How Do I Draw Bitcoin Trendlines Correctly for Upward Bitcoin Trend
How Do I Draw Upwards Trendline Correctly - How to Draw Trend Lines Correctly
Example 2: How to Draw Bitcoin Downward Bitcoin Trendline Correctly
To draw a downwards bitcoin trendline correctly use two resistance points in a bearish downward bitcoin trend so as to plot the downwards bitcoin trend-line & then extend the bitcoin trend-line as illustrated below. Downward bitcoin trendline will show the general direction of bitcoin trading prices & as long as bitcoin trading price is below this downwards bitcoin trend line then the downwards bitcoin trend will remain intact - bearish downwards trend.
If bitcoin trading prices move above the downwards bitcoin trendline which is the resistance area for the bearish downwards bitcoin trend then traders should close out all their open trade positions - because this might be a market trend reversal. In an downwards bitcoin trend trading price should generally stay below the resistance area which is marked by the downwards bitcoin trend line.
How Do I Draw Bitcoin Trend Lines Correctly for Downward Bitcoin Trend
How Do I Draw Downwards Trendline Correctly - How to Draw Trend Lines Correctly
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