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