How to Trade a Bitcoin Trend Reversal

Bitcoin Trend Reversal Trading Strategy

After bitcoin trading price has moved in a certain direction for an extended period of time within a bitcoin trend it reaches a point where it stops moving within the cryptocurrency trend. When this happens we say that the bitcoin trend line has been broken & this is interpreted as a cryptocurrency trend reversal signal.

Since the bitcoin trend line is the point of support or resistance and this point of support or resistance has been broken after a bitcoin trend-line break - we then expect bitcoin trading price to move towards the opposite direction and this is interpreted as a cryptocurrency trend reversal signal.

When this happens bitcoin traders will close the open cryptocurrency orders which they had bought or sold. This is referred to as taking profit.

Up BTCUSD trend Bitcoin Trading Reversal

When bitcoin trading price breaks-out below the upward bitcoin trend-line (support) btcusd trading market will then move downwards

Bitcoin Upward Bitcoin Trendline Break - How to Identify a Bitcoin Trend Reversal Signal

This bitcoin trend reversal trading signal is considered to be complete with formation of lower high of the bitcoin price. This also provides a trading opportunity to sell once the bitcoin trend line is broken - bitcoin trading reversal bitcoin trade signal.

Down BTCUSD trend Bitcoin Trading Reversal

When bitcoin trading price breaks-out above the downwards line (resistance) the bitcoin trading price will then move up

Bitcoin Downward Bitcoin Trend-Line Break -How to Identify a Bitcoin Trend Reversal Signal

This bitcoin trend reversal cryptocurrency signal is considered to be complete with the formation of higher low. This cryptocurrency reversal setup also provides a trading opportunity to open a buy bitcoin trade once the bitcoin trend line is broken - bitcoin trend line reversal bitcoin trade signal.

NB: Sometimes when bitcoin trading price breaks its bitcoin trend it might first of all consolidate before moving in the opposite direction. Either way it is always good to take profit when the btcusd trading market bitcoin trend reverses.

To trade this bitcoin trading reversal setup as a trader once you open a new bitcoin trade in direction of the bitcoin trend reversal the bitcoin trading price should immediately move in that direction, in a bitcoin price breakout manner. This means that the bitcoin prices should immediately move in that direction without much of a resistance.

If on the other hand the bitcoin trading prices do not immediately move in direction of the bitcoin trading price breakout then it is best to close out the bitcoin trade because it means that the bitcoin trend is still holding.

Another tip is to wait for the bitcoin trend line to be broken and for the btcusd trading market to close above or below it so as to confirm this cryptocurrency trend reversal signal.

What happens is that most traders open trades waiting for a bitcoin trading reversal even before the bitcoin trend is broken, only for the bitcoin trading price to touch this bitcoin trend line & for the current market bitcoin trend direction to hold and bitcoin to continue with the current market trend.

Therefore, when trading this bitcoin trading reversal setup it is best to wait until the bitcoin trading price break out has been completed by bitcoin trading price closing above or below the bitcoin trendline, depending on the direction of the market.

• Upward Market Bitcoin Trend Direction Reversal - this reversal cryptocurrency signal is confirmed once the bitcoin trading price closes below this upward bitcoin trendline, this should be the correct time to open a sell bitcoin trade, so as to avoid a bitcoin trading whipsaw.

• Downward Market Bitcoin Trend Direction Reversal - this reversal cryptocurrency signal is confirmed once the bitcoin trading price closes above the downward bitcoin trendline, this should be the correct time to open a buy bitcoin trade, so as to avoid a bitcoin trading whipsaw.