Trade Bitcoin Trading

Momentum Bitcoin Trends

What is a Momentum Trend?

A momentum bitcoin trend is one that has more strength than the previous one, it can be portrayed using a much steeper bitcoin trend line than the one that was in play before. When a new line forms that's much steeper than a earlier one we say that the bitcoin trend has gained more strength & becomes much stronger. These types of set-ups require a different type of analysis.

In the cryptocurrency example illustrated below: Also when bitcoin price is moving upwards within a channel, if it breaks the upward channel a stronger bitcoin trend is initiated as shown in the diagram below. If as a trader your trading chart breaks an upward bitcoin trend line to the upward side in an up moving market like the one below, Don't Try to Sell, Buy More Contracts, Remember this bitcoin trading tip it can make you a lot of money just like the way it did in the analysis below.

Channel Break Upwards

Channel Break Upward - More Momentum on Upward Market Movement

Using the same technical analysis example above we can also see how new steeper trendlines were shaped showing the bitcoin trend was gathering momentum.

This is illustrated by the steeper trend lines which can be depicted as the bitcoin price progresses.

The newly initiated bitcoin trend has more momentum than the earlier one as displayed by the formation of the steeper trend line.

This forms bitcoin trend B & C as shown in the diagram below portrayed using the MT4 technical analysis software, The momentum added a new steeper line as drawn on this chart.

This is shown in the cryptocurrency example illustrated below by the three lines A, B and C showing formation of stronger trends as the btcusd market continues to gain momentum.

Momentum Trends in Bitcoin - Analysis of BTCUSD Parabolic Trends and BTCUSD Momentum Trends

Bitcoin Price Gathering More Momentum

However, when the steepest bitcoin trend line is broken then even others trendlines will most likely also be broken too. It is best to take profit once the steep most trendline is broken.

This strategy can also be used by short term bitcoin traders like the day trader or the scalper, this setup will frequently form on the 5 min & 15 min chart. This parabolic trend lines can be used to know where to take profit order. A trader should immediately book his profit as soon as the steepest trend-line is broken.

How to Trade These

The momentum bitcoin trendlines are good trading analysis tools for determining where to take profit early before other traders. This momentum setup occurs frequently on 1 minute, 5 minute & 15 minute trading charts and thence suitable for scalpers & day traders. For intra-day trading which is most common? - the best trading chart to use is the 15 minutes sometimes the 5 minutes, for example after entering a short-term trade position either buy/sell and the btcusd market moves some pips in your favor & you spot this setup then it is best to exit once the steep most trend line is broken & take profit at that point.

Analysis Examples

For this example we shall use short term trading chart of minutes for plotting, when the setup appeared as below, it was a good point to book the profit.

Trading with Momentum Bitcoin Trend Lines - How to Analyze Momentum Trends in Charts

Trading the Momentum Market Moves

In the above example one trading long would have waited until the steepest trendline was broken then closed the trade and taking profit at this point thus making a profit of 42 pip on this buy bitcoin trade. Trader would have exited the trade transaction at the best time and thus avoided the ranging market that followed.

What is it?

Sometimes a market heads in a parabolic manner, & this is seen when panic buying sets in and bitcoin prices is pushed vertically. During a parabolic up move, there is almost complete absence of sellers, which forms a vacuum of buying. When this occurs traders dash to just get in to the btcusd market regardless of bitcoin price, in fear of being left backwards. This move can make the largest bitcoin price movements in the shortest amount of time, traders will set buy trade orders in this bitcoin trade setup.

For this type of move it's best to keep buying - no need for technical analysis just keep buying.

This bitcoin trend will last for even months on end even upto 2 years, for this time just keep buying & as long as those weekly & monthly bitcoin trendlines are holding just keep buying & buying.

When bitcoin moves in this way, the highest level that is attained often marks the end of a move with bitcoin prices not going back to the ultimate highs again for a very long time. When this point is reached & the most steepest bitcoin trendline is broken it is best to consider that as a bitcoin trend reversal and it's best to take time off the btcusd market & enjoy your profits for a while before calculating what's your next move.

The same can also happen for a down bitcoin trend when there is panic selling and bitcoin price is also driven vertical. This especially happens during recession.

The steeper a bitcoin trend line angle, the less dependable it becomes. When the most steep is broken its best to exit this trade position. The example illustrated below is for crude oil that has initiated a parabolic setup. Another example is bitcoin that formed on the weekly/monthly chart during the period shortly after the steepest line in the crude oil chart was broken.

Parabolic Bitcoin Trend - How to Interpret a Bitcoin Price Trend

As a trader if you happen-to come across a parabolic bitcoin trend in an upward trend just keep opening buy and buying some more & you will more likely to make profits trading this trend direction, there will be no added analysis requirement just the trend-lines. The one thing to remember is to exit the trade once the steep most line is broken because the reversal on this cryptocurrency pattern is very quick you need to also be very fast. Just make sure that you get out at the correct spot just like in the above example.

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