Bitcoin Indicators for Setting Stop losses in Bitcoin Trading
Some indicators are used for setting stop losses taking away the need for traders to perform complex calculations on where to place these stop loss orders.
A trading systems trader can also set a stop loss order according to these cryptocurrency indicators. Some indicators use mathematical equations to calculate where the order stop loss order should be set so as to provide an optimal exit. These cryptocurrency indicators can be used as the basis for setting stop loss orders. These indicators follow price action of a bitcoin crypto closely and define the boundaries which the prices should move along in. When the price moves outside these boundaries it is therefore best to close the open cryptocurrency trades because price stops moving in that particular direction.
Some of the Technical indicators that can be used to set stop loss crypto orders are:
Automatic Stop Loss BTCUSD Order and Take Profit Bitcoin Order Technical Indicator
Parabolic SAR is like an Automatic Stop Loss Bitcoin Order and Take Profit Bitcoin Order Indicator used to set a trailing price stop loss
The Parabolic SAR provides excellent exit points.
In an upwards trend, you should close long trades when the price falls below the Parabolic SAR indicator
In a downwards trend, you should close short trades when the price rises above the Parabolic SAR.
If you are long then the price is above the parabolic SAR, the SAR will move up every day, regardless of the direction in which the price is moving. Amount the Parabolic SAR indicator moves up depends on the amount that prices moves.
Parabolic SAR - Cryptocurrency Indicator - Automatic Stop Loss Bitcoin Order and Take Profit Bitcoin Order Technical Indicator
Picture of parabolic SAR & how it is used
Crypto Indicator for Setting Stop Loss Bitcoin Orders
Bollinger bands indicator use standard deviations as a measure of volatility. Since standard deviations technical indicator is a measure of volatility, the Bollinger bands are self-adjusting meaning they widen during periods of higher volatility and contract during periods of lower volatility.
Bollinger Bands cryptocurrency indicator consist of 3 bands designed to encompass the majority of a crypto trading instruments price action. The middle band is a basis for the intermediate term trend, mostly it is a 20 day period simple moving average, which also serves as the base for calculating the upper band and lower band. The upper band's and the lower band's distance from the middle band is determined by price volatility.
Since these Bollinger bands are used to encompass the btcusd trading price action, bands can be used to set stop loss orders outside the areas of the bands.
Bollinger Band Setting Stop Loss Bitcoin Order Level - Bollinger Bands Bitcoin Technical indicator
Automatic Stop Loss Bitcoin Order and Take Profit BTCUSD Order Technical Indicator
Fib retracement levels provide areas of support & resistance, these can then be used to set stop loss levels.
Fibonacci Retracement level 61.8 % is the most commonly used level for setting stop losses. A stop loss order should be set just below 61.8 % fib retracement level
The 61.8 % Fib retracement level technical indicator is used to set these orders since its rarely hit.
Fibonacci Indicator Stop Loss Crypto Order Setting at 61.8% Retracement Level
Fibonacci retracement level 61.8% - Fibonacci Crypto Indicator
Support & Resistance Levels Lines
Support and resistance levels can be used to set stop loss levels where the stop loss orders are set just above or below the support or resistance.
- Buy Trade - Stop Loss Bitcoin Order set few pips below the support
Buy Trade - Stop Loss Bitcoin Order set a few pips below the support
- Sell Trade - Stop Loss Bitcoin Order set a few pips above the resistance
Sell Trade - Stop Loss Bitcoin Order set few pips above the resistance
