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