Technical Analysis Consolidation Chart Pattern
To trade consolidation chart patterns in bitcoin traders need to learn about the technical analysis of consolidation bitcoin chart pattern.
Consolidation BTCUSD Crypto Currency Patterns
Consolidation bitcoin patterns are chart patterns with converging bitcoin trend lines that form a bitcoin price consolidation period phase.
The technical buy point from a consolidation chart pattern is the upside breakout of bitcoin price
While a down-side breakout of bitcoin price is a technical sell bitcoin signal.
Ideally, a market breaks-out from a symmetrical triangle prior to reaching apex of the triangle.
Bitcoin Trend-Lines can be drawn by connecting the lows and highs of the consolidation phase, the bitcoin trend lines formed are symmetric & converge to form an apex.
A bitcoin price breakout should occur somewhere between 60-80% into the consolidation chart pattern - triangle chart pattern. An early or late breakout is more liable to failure, & henceforth less reliable.
After a bitcoin price breakout the apex forms support and resistance zones for the bitcoin price. BTCUSD Crypto Currency Price that has broken out of the consolidation pattern should not retrace past the apex zone. The apex of the consolidation pattern is used as a stoploss order setting area for the open Crypto trades.
When these consolidation chart patterns form we say that the Bitcoin market is taking a pause before deciding which is the next direction to move.
The consolidation patterns form when there's a tug of war between the buyers & the sellers & the btcusd market can't decide which way to continue.
Crypto Trade a Consolidation Pattern? - Technical Analysis Consolidation Crypto Chart Pattern in Crypto Trading?
However, this consolidation pattern cannot go on forever and just like in a tug of war one side eventually wins, looking at the chart example illustrated below see how the bitcoin trading consolidation pattern eventually had a bitcoin price break out and moved in one direction.
Sell Trading Signal
Buy Trade Signal
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