Trade Bitcoin Trading

Bitcoin Price Action 1 2 3 method in the Bitcoin Trade Market

Bitcoin Price action is the use of only charts to trade Bitcoin, without use of trading chart technical indicators. When trading using this method, candle charts are used. This strategy uses lines and predetermined patterns such as 1-2-3 pattern that either develops or series of bars.

Traders use this strategy because this trading analysis is very objective and allows the one to analyze the btcusd trading market moves based on what they see on the charts and market movement analysis alone.

This strategy is used by many traders: even those who use technical indicators also integrate some form of bitcoin price action in their strategy.

The best use of this method is achieved when the signals generated are combined with line tools to provide extra confirmation. These line tools include bitcoin trend lines, Fibonacci retracement, support & resistance levels.

Bitcoin Price Action 1 2 3 Breakout

This strategy uses three chart points to determine the break out direction of bitcoin crypto. 1-2-3 technique uses a peak & a trough, these points forms point 1 & point 2, if market goes above the peak the signal is to go long, if it falls below the trough the signal is to short. Breakout of point 1 or point 2 forms the third point.

Bitcoin Price Action 1 2 3 method breakout trading - Crypto Price Action Method

Series of breakouts on Bitcoin Trading Chart

BTCUSD Price Action Method

Investors use bitcoin price action to try & predict where a bitcoin trend direction might go. The market is either trending or ranging.

A trending market heads in a particular direction while a ranging market moves sideways, normally after getting to a support or resistance area.

Observing the behavior of bitcoin price action provides this information of whether the btcusd market is trending or ranging or reversing its direction.

As with any other Bitcoin strategy this method should also be combined with other confirming indicators to avoid whipsaws. The 1-2-3 pattern setup can give good signals in a trending market but will give whipsaws when the btcusd trading market is range-bound, it is better to determine if the btcusd trading market is trending or not before you begin using this strategy.

Combining This Strategy with other Technical Indicators

Good technical indicators to combine with are:

  • RSI
  • Moving Average Technical Indicator

Investors should use these two indicators to confirm if the direction of break out is in line with the bitcoin trend direction shown by these 2 indicators. If the direction also is the same as those of these trading indicators then traders can open a trade transaction in direction of the signal. If not investors should not open a trade as there's more likely a chance that this signal may be a bitcoin whipsaw.

Just like any other indicator in Bitcoin Crypto Currency Trading, bitcoin price action also has whipsaws and there is a requirement to use this trading strategy as a combination with other signal as opposed to just using this strategy alone.

Combining Bitcoin Price Action 1 2 3 Method with Indicators RSI and Moving Averages - Bitcoin Price Action Method

Combining with other Indicators - RSI & Moving Averages

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