Bitcoin Indicators for Setting Stop-loss in Bitcoin Trading
Some cryptocurrency indicators are used for setting stop losses taking away the need for traders to perform complex calculations on where to place these stop loss bitcoin orders.
A bitcoin systems trader can also set a stop loss bitcoin order according to these cryptocurrency indicators. Some indicators use mathematical equations to calculate where the trade order stop loss cryptocurrency order should be set so as to provide an optimal exit. These cryptocurrency indicators can be used as the basis for setting stop loss cryptocurrency orders. These indicators follow bitcoin price action of a bitcoin instrument closely and define the boundaries which the bitcoin prices should move along in. When the bitcoin price moves outside these boundaries it's thence best to close the open cryptocurrency trades because bitcoin price stops moving in that particular direction.
Some of the Technical cryptocurrency indicators that can be used to set stop loss crypto orders are:
Automatic Stop Loss BTCUSD Order & TP Bitcoin Order Indicator
Parabolic SAR is like an Automatic Stop Loss Bitcoin Order & TP Bitcoin Order Indicator used to set a trailing bitcoin price stop loss
The Parabolic SAR provides excellent exit points.
In an upwards bitcoin trend, you should close long trades when the bitcoin price falls below the Parabolic SAR indicator
In a downwards btcusd crypto currency trend, you should close short trades when the bitcoin price rises above the Parabolic SAR.
If you are long then the bitcoin price is above the parabolic SAR, the SAR trading indicator will move up each day, regardless of the direction in which the btcusd crypto currency price is moving. Amount the Parabolic SAR indicator moves up depends on the amount that bitcoin prices moves.
Parabolic SAR - Indicator - Automatic Stop Loss Bitcoin Order & TP Bitcoin Order Indicator
Picture of parabolic SAR and how it is used
Crypto Indicator for Setting Stop Loss Bitcoin Orders
Bollinger Band indicator use standard deviations as a measure of volatility. Since standard deviations technical indicator is a measure of volatility, the Bollinger bands are self-adjusting meaning they widen during periods of higher volatility and contract during periods of lower volatility.
Bollinger Band cryptocurrency indicator consist of 3 bands designed to encompass the majority of a instruments bitcoin price action. The middle band is a basis for the intermediate term bitcoin trend, mostly it is a 20 day period simple MA, which also serves as the base for calculating the upper band & lower band. The upper band's & the lower band's distance from the middle-band is determined by price volatility.
Since the Bollinger Band are used to encompass the btcusd price action, bands can be used to set stop loss orders outside the levels of the bands.
Bollinger Bands Setting Stop Loss Bitcoin Order Level - Bollinger Bands Bitcoin Technical indicator
Automatic Stop Loss Bitcoin Order & TP BTCUSD Order Indicator
Fib retracement levels provide areas of support & resistance, these can then be used to set stoploss order levels.
Fibo Retracement level 61.8 percentage% is the most commonly used level for setting stop losses. A stop loss btcusd crypto currency order should be set just below 61.80 % fib retracement level
The 61.8% Fibo retracement level indicator is used to set these orders since its rarely hit.
Fibonacci Indicator Stop Loss Order Setting at 61.8% Retracement Level
Fibonacci retracement level 61.8% - Fib Indicator
Support and Resistance Levels Lines
Support and resistance levels can be used to set stop loss levels where the stop loss cryptocurrency orders are set just above or below the support or resistance.
- Buy Bitcoin Trade - Stop-Loss Bitcoin Order set few pips below the support
Buy BTCUSD Trade - Stop-Loss Bitcoin Order set a few pips below the support
- Sell Bitcoin Trade - Stop-Loss Bitcoin Order set a few pips above the resistance
Sell BTCUSD Trade - Stop-Loss Bitcoin Order set few pips above the resistance
Study More Courses and Tutorials:
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- How Can You Analyze BTC USD Divergence Trading Setup?
- How Can You Open Live BTCUSD Trading Account with $500?
- How Can You Analyze BTC USD Trendline Trading Signal Analysis?
- How Can You Add Buy Limit BTC USD Order in BTCUSD Software?
