Consolidation Trading Patterns
With consolidation bitcoin trading chart patterns the btcusd cryptocurrency trading market can go in any direction after a bitcoin crypto currency price breakout. Consolidation chart patterns are used to identify breakout 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
- Rectangles - Range Bitcoin Crypto Currency Patterns
Consolidation Trading Patterns
Symmetric 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 break out in one direction after this pattern breaks-out in one direction. The bitcoin buy signal from a consolidation triangle pattern setup is the upside bitcoin price break out, while a down-side bitcoin price break out is a bitcoin sell signal. Ideally, a the bitcoin crypto price breaks out from a consolidation pattern prior to reaching the apex of the triangle.
Bitcoin Crypto Currency Trendlines btcusd crypto trend lines can be drawn by connecting the lows & highs of the consolidation pattern for the btcusd crypto price, the bitcoin trend lines formed are symmetric & converge to form an apex of a triangle - consolidation triangle pattern. A btcusd crypto price breakout should occur somewhere between 60% - 80 % into the triangle consolidation chart pattern. An early or late btcusd crypto break out is more prone to btcusd crypto currency trading whipsaws, & therefore less reliable. After a bitcoin price breakout to one side the apex of the consolidation triangle chart pattern forms the support and resistance levels for the bitcoin price. Bitcoin Crypto Currency price that has broken out of the consolidation chart pattern shouldn't retrace past the apex. The apex is used as a stoploss setting level for the open trades placed after a bitcoin crypto currency price breakout.
When consolidation bitcoin patterns form we it signals an impending bitcoin price break out once bitcoin price breakout and moves out of this consolidation chart pattern - How to Trade Breakouts In Cryptocurrency - How to Identify Cryptocurrency Break Out Pattern - Cryptocurrency Break Out Strategy Bitcoin.
The consolidation bitcoin patterns form when there is a tug of war between buyers and sellers and the bitcoin market can't decide which way to proceed.
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However, this consolidation chart pattern cannot go on forever - the btcusd 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 bitcoin crypto currency price consolidating, If bitcoin price breaks the upper line this is a buy bitcoin signal, if bitcoin price breaks the lower line this is a sell bitcoin trading signal.
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A rectangle consolidation chart pattern is a trading range with narrow btcusd crypto price action that develops in to a consolidation phase in bitcoin crypto trading market. The bitcoin trading range is defined by 2 parallel bitcoin trend lines which are horizontal and these indicate the presence of support zones & resistance areas at this particular area. Rectangle consolidation pattern is drawn on a bitcoin crypto currency chart using a rectangle, therefore the name bitcoin rectangle bitcoin trading chart pattern.
For this bitcoin crypto currency consolidation chart pattern, btcusd crypto currency price forms a series of highs & lows which can be joined with horizontal bitcoin crypto currency trend-lines which are parallel to each other. Rectangle consolidation pattern forms over an extended period of time giving this btcusd crypto setup its rectangle shape.
A btcusd crypto breakout of btcusd crypto price action from this rectangle consolidation pattern forms when either of the horizontal line is penetrated and the bitcoin crypto currency trading range of the rectangle bitcoin crypto currency setup is broken. An up side bitcoin price break out is a buy crypto signal. A downside bitcoin crypto currency price breakout is a sell bitcoin crypto currency signal.
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Bitcoin Crypto Currency Price Breaks-Out of rectangle consolidation range after a period of time & btcusd crypto price continues to move upward after an upwards btcusd crypto price breakout.
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