Upward Bitcoin Trend Lines and Channels

An upward bitcoin trend line is drawn below the bitcoin trend pattern by connecting at least two lows. This upward bitcoin trend line will draw a line that show the general direction of the btcusd trading market.

The diagram below shows how btcusd price moves when it is moving in a bullish market. The btcusd price will move upwards forming support levels.

Since the btcusd trading market moves in a zigzag manner bitcoin traders normally draw a bitcoin trend line which shows the general upwards direction of the btcusd trading market.

A up bitcoin trend occurs when the fore btcusd price makes consecutive higher highs and higher lows. Each high is higher than the previous high - higher high , and each low is higher than the previous low - higher low.

BTCUSD Crypto Up trend lines gain more validity each time btcusd price touches this upward bitcoin trend line but does not penetrate it. A up bitcoin trend remains in place until this series of higher highs and higher lows is broken.

A downside penetration of an upward bitcoin trend line is a technical sell bitcoin trading signal, and usually the first indication that an upward bitcoin trend may soon end.

Drawing an Upward Bitcoin Trend Line

When the btcusd trading market moves up it forms higher highs and higher lows forming a bullish market movement - Upward Bitcoin Trend. An upward bitcoin trend line can then be drawn by connecting these higher lows.

To draw this upward bitcoin trend line setup we use supports. To draw the upward bitcoin trend line correctly two support levels are needed. When btcusd price touches the upward bitcoin trend line we buy and place stop loss cryptocurrency orders just a few pips below the upward bitcoin trend line. The diagram below shows an example of an upward bitcoin trend line.

The crypto upward bitcoin trend line setup will show the general direction of the btcusd trading market as bullish therefore bitcoin traders will only open buy long cryptocurrency trades as long as btcusd price is within this upward bitcoin trend bullish market setup and within the support levels. These support levels are the levels where if the btcusd trading market retraces then these points will provide strong supports for the bitcoin price. This is why many crypto buyers will wait until btcusd price retraces downwards and hits these retracements levels market the upward bitcoin trend line to open buy cryptocurrency trades. Bitcoin trades opened at this support levels have a high Risk to Reward Ratio with minimum draw down.

In the above upward bitcoin trend line cryptocurrency trading setup the bitcoin trader would have opened buy/long cryptocurrency trades from the signals generated at the support1, support2, support3 and these cryptocurrency trades would have made a lot of profits with minimum amount of draw-down/retracement.

Upward Cryptocurrency Channel

An upward crypto channel is drawn by drawing a line that is parallel to the upward bitcoin trend line and then adjusted to touch the top boundary of the btcusd price movement. This then forms an upward crypto channel and as long as the btcusd price stays between these two channels the bullish market movement will continue moving up.

Trading the Cryptocurrency Channel

This upward crypto channel is used by cryptocurrency traders to show levels where it is best to take profits. Traders will take some profit once the btcusd price touches the upper channel and wait for another retracement before opening a long buy bitcoin trade again.

Bitcoin Trend Lines MetaTrader 4 Bitcoin Trend Line Indicator

The MetaTrader 4 Bitcoin Trend Line Indicator drawing tools to draw these bitcoin trend lines and crypto channels setups on the MT4 are located on the MT4 drawing tool bar within the MetaTrader 4 platform, To access this MT4 tool bar if it is not activated on your bitcoin trading platform, Click in "View" Next to "File" at the top left corner of the MT4 platform and click View, Then Click on Tool bars, Then Check the "Lines Toolbar" by clicking on it.

Below is the screenshot Image of the MT4 drawing tool bar. To draw a bitcoin trend line on a cryptocurrency chart just click on this MT4 bitcoin trend line drawing tool and select the point where you want to draw the bitcoin trend line.

This is one of the learn cryptocurrency trading technical analysis lesson among the many learn bitcoin trading tutorials on this website located on the side navigation menu, where you will learn how to draw bitcoin trend lines and analyze these bitcoin trend lines setups.