MA Support and Resistance Zones
Moving Averages can be used as points of support and resistance on bitcoin charts.
When bitcoin price reaches the moving average, the Moving Average level can act as a point of support or resistance for the bitcoin price.
Buy Trade Signal
If bitcoin price is on an upward bitcoin trend & starts to retrace, then most traders might wait to buy at a better bitcoin price when the bitcoin price hits a support level. Bitcoin Traders will sometimes use the MA to determine the support zone.
A buy cryptocurrency signal gets generated when bitcoin price hits the Moving Average, turns and starts heading in the upward bitcoin trend direction. The cryptocurrency signal is confirmed when bitcoin price closes above the Moving Average. Because many btcusd crypto currency traders use the MAs to generate cryptocurrency trading signals, btcusd crypto currency price will normally react to these zones.
A stop loss should be set just below the Moving Average bitcoin Indicator. Ideally it should be set a couple of pips below the previous low.
How Do I Trade Bitcoin with MA Strategy Method
Sell Trading Signal
If the bitcoin price is on a downward bitcoin trend & starts to retrace, then most traders might wait to sell at a better bitcoin price when the bitcoin price hits a resistance area. Bitcoin Traders will sometimes use the MA to determine the resistance area.
A sell cryptocurrency signal gets generated when bitcoin price hits the Moving Average, turns and starts heading in the downward bitcoin trend direction. The cryptocurrency signal is confirmed when bitcoin price closes below the Moving Average. Because many btcusd crypto currency traders use the MAs to generate cryptocurrency trading signals, btcusd crypto currency price will normally react to these zones.
A stoploss should be set just above the bitcoin trading moving average indicator. Ideally it should be set a couple of pips above the previous high.
Sell Bitcoin Signal - How Do I Trade Bitcoin with MA Strategy Method
Resistance Zone turns Support Area
In Bitcoin - When a resistance level is broken it turns into support and vice versa.
This happens when the fundamentals of a bitcoin trend change and consequently the direction of bitcoin crypto. Direction change is reflected by the moving average cryptocurrency technical indicator, the direction is confirmed when resistance zone turns into support area or vice versa (when support area turns into resistance level)
Resistance Level turns Support Level - Moving Average Bitcoin Strategy Method Example
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