Trading Cryptocurrency Draw a Bitcoin Trendline on a Chart
Bitcoin Trading How to Draw a Bitcoin Trend-Line on a Chart - How to Draw Bitcoin Trend Lines on Cryptocurrency Charts
Principles of How to Draw a Bitcoin Trend-Line on a Chart
Use crypto candle charts to draw bitcoin trend lines
- The points used to draw a bitcoin trendline on a bitcoin chart are along the lows of the bitcoin price bars in a bullish bitcoin market. An upward bullish bitcoin trend is defined by higher highs and higher lows.
- The points used to draw a bitcoin trendline on a bitcoin chart are along the highs of the bitcoin price bars in a bearish bitcoin market. A downward bearish bitcoin trend is defined by lower highs and lower lows.
- The points used to draw bitcoin trend lines on the crypto charts are the extremes points - the high or the low bitcoin price. These extremes are important because a close beyond the extreme chart points tells bitcoin traders the bitcoin trend might be changing. This is an entry or an exit bitcoin signal.
- The more often a bitcoin trendline on a cryptocurrency chart is hit but it's not broken, the more powerful its bitcoin trend signal.
Example 1: How to Draw a Bitcoin Upward Bitcoin Trend-Line on a Chart
To draw an upward bitcoin trendline on a cryptocurrency chart use two support points in a bullish upwards bitcoin trend so as to plot the upwards bitcoin trend line and then extend the bitcoin trend line as displayed below. Upwards bitcoin trendline on a cryptocurrency chart will show the general direction of bitcoin prices and as long as bitcoin price is above this upwards bitcoin trend line then the upwards bitcoin trend will remain intact - bullish upwards cryptocurrency trend.
If bitcoin prices move below the upward bitcoin trend line which is the support level for the bullish upwards bitcoin trend then cryptocurrency traders should close all their open cryptocurrency trades - because this might be a cryptocurrency trend reversal signal. In an upward bitcoin trend bitcoin price should generally stay above support level which is marked by the upward bitcoin trend line on the bitcoin charts.
Draw a Bitcoin Trading Up Bitcoin Trendline on a Chart in Bitcoin Trading
How to Draw an Upwards Crypto Trend Line on a Chart - How to Draw a Crypto Trend-Line on a Chart
Example 2: How to Draw a Bitcoin Downward Bitcoin Trend-Line on a Chart
To draw a downward bitcoin trendline on a cryptocurrency chart use two resistance points in a bearish downwards bitcoin trend so as to plot the downward bitcoin trend line and then extend the bitcoin trend line as shown below. Downwards bitcoin trendline on a cryptocurrency chart will show the general direction of bitcoin prices and as long as bitcoin price is below this downward bitcoin trend line then the downwards bitcoin trend will remain intact - bearish downward cryptocurrency trend.
If bitcoin prices move above the downwards bitcoin trend line which is the resistance level for the bearish downwards bitcoin trend then traders should close all their open cryptocurrency trades - because this might be a cryptocurrency trend reversal signal. In an downwards bitcoin trend bitcoin price should generally stay below the resistance area which is marked by the downward bitcoin trendline on a bitcoin chart.
Draw a Bitcoin Trading Down Bitcoin Trendline on a Chart in Bitcoin Trading
How to Draw a Downward Crypto Trend Line on a Chart - How to Draw a Crypto Trend-Line on a Chart
