Bitcoin Trading Long and Short and Trading Charts
In Bitcoin trading, there are two types of trades, these are:
- Long (buy) - long is if the trend is buy/bullish.
- Short (sell) - short is if the trend is sell/bearish.
Buying/Long and Selling/short Both terms, refer to things we do when open a Bitcoin trade.
Buying Long = term to use when buying and when opening a Bitcoin trade.
Selling short = term to use when selling and when opening a Bitcoin trade.
Long - Long is another term used to refer to buying of Bitcoins, If a trader goes long it means that he buys the BTCUSD pair that is heading in an upward trend. When the price is moving in an upward trend the trend is referred to as bullish.
Short - Short is another term used to refer to selling of Bitcoins, If a trader goes short it means that he sells the BTCUSD pair that is heading in a downward trend. When the price is moving in a downward trend the trend is referred to as bearish.
Basically the term, "selling short" can be refer to selling BTCUSD in the online Bitcoin trading markets. Selling short is used to transact a financial instrument (for example Bitcoin) that is predicted to depreciate in value compared to another, when this financial instrument is sold then it is the same as not holding value in this instrument and holding the same value in the other currency - in our example selling Bitcoin and holding the value in the currency USD.
Buy/Long
If the price is going up we buy, this is referred to as going long Therefore long is just another name for buy. When the market trend is going up it is referred to as a bullish, this is when a buy order is placed. A bullish trend is identified by plotting an upwards trendline on a BTCUSD trading chart. The example below shows a long/buy signal.
Buy/Long - Buy BTCUSD Bitcoin Cryptocurrency
Sell/Short
If the BTCUSD price pair is going down we sell Bitcoins, this is referred to as going short. When the market trend is going down it is referred to as a bearish. The example below shows a downward trend, this is when a short sell is placed. The short/sell is identified by drawing a downward trendline on a chart. The example below shows a short/sell signal.
Sell/Short - Sell BTCUSD Bitcoin Cryptocurrency
Bitcoin Charts
A Bitcoin trading chart provides a visual representation of exchange rates (plotted on the y-axis) against time (plotted on the x-axis) for the Bitcoin prices - BTCUSD Chart. The movement of Bitcoin prices is plotted on these trading charts. The chart can be plotted as candlestick charts like the one above or as line charts or bar charts.
BTCUSD Chart
The three common types of charts used in Bitcoin Market are:
- Candle BTCUSD Trading Charts
- Line charts
- Bar charts
These 3 types of Bitcoin trading charts are covered in the topic Bitcoin Chart Types.
Setting Buy Long and Sell Short on MetaTrader 5
Bitcoin Trading Platform
This is the software which is provided by an online broker to help traders place their transactions in the online BTCUSD trading market. Once you download and install this software on your computer you can then begin to trade in the Bitcoin Trading Market and also the Forex market. All transactions through this trading platform are executed through this MetaTrader 5 platform. If you want to learn trading platforms, MetaTrader 5 is a good platform to start with.
Open New Trading Orders - MT5 Bitcoin Trading Platforms
To set these buy or sell orders - open MT5 platform, open a "Bitcoin chart", right click on the "Bitcoin chart ", select "New Order ", then select the trading order either sell or buy as shown above. (Short Cut Keys To Open Trade Orders Window - Press F9 Key).
