Upward Bitcoin Trend Lines and Channels

An upwards bitcoin trend line is drawn below the bitcoin trend pattern by connecting at least 2 lows. This upward bitcoin trend line will draw a line that show the general direction of the market.

The diagram below shows how bitcoin price moves when it is moving in a bullish market. The bitcoin price will move up-ward forming support regions.

Since the btcusd market moves in a zig zag manner bitcoin traders normally draw a bitcoin trend line which displays the general upwards direction of the market.

A up bitcoin trend occurs when the fore bitcoin price will continue to make consecutive higher highs and higher lows. Each price high is going to be higher than the previous high - higher high, & each low is higher than the previous low - higher low.

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

A down-side penetration of an up-ward bitcoin trend line is a technical sell bitcoin signal, & usually the first indication that an up-ward bitcoin trend may soon end.

Drawing an Upwards BTCUSD Trend Line

When the btcusd market moves upwards 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 upwards bitcoin trend line setup we use supports. To draw the upward bitcoin trend line correctly two support levels are needed. When bitcoin price touches the up-ward 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 market as bullish therefore bitcoin traders will only open buy long cryptocurrency trades as long as bitcoin price is within this upward bitcoin trend bullish market setup and within the support areas. These support levels are the levels where if the btcusd market retraces then these points will provide strong supports for the bitcoin price. This is why many buyers will wait til bitcoin price retraces downwards & hits these retracements levels market the upward bitcoin trend line to open buy cryptocurrency trades. Bitcoin trade transactions opened at this support levels have a high Risk to Reward Ratio with minimum draw down.

In the above up-ward bitcoin trend line cryptocurrency setup the 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 Channel

An upward channel is plotted by plotting a line which's parallel to the upward bitcoin trend line and then adjusted to touch the tops boundary of the bitcoin price movement. This then forms an up-ward crypto channel and as long as the bitcoin price stays between these two channels the bullish market movement will continue moving upwards.

Trading the Cryptocurrency Channel

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

Bitcoin Trend Lines MT4 Bitcoin Trend Line Indicator

The MT4 Bitcoin Trendline Indicator drawing tools to draw these bitcoin trend lines & channels setups on the MT4 are located on the MT4 drawing tool bar within the MT4 platform, To access this MT4 tool bar if it is not activated on your bitcoin platform, Click in 'View' Next to the 'File' menu at top left corner of MetaTrader 4 platform & click View, Then Click on Tool Bars, Then Check the 'Lines Tool Bar' by clicking on it.

Shown Below is the screen-shot Image of the MetaTrader 4 drawing toolbar. To draw a bitcoin trend line on a chart just click this Meta Trader 4 bitcoin trend line drawing tool and choose the point where you want to draw the bitcoin trend line.

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