Bitcoin Indicators for Setting Stop losses in Bitcoin Trading
Some cryptocurrency indicators are used for setting stop losses taking away the need for cryptocurrency traders to perform complex calculations on where to place these stop loss bitcoin orders.
A bitcoin trading systems trader can also set a stop loss bitcoin order according to these cryptocurrency indicators. Some crypto indicators use mathematical equations to calculate where the order stop loss cryptocurrency order should be set so as to provide an optimal exit. These cryptocurrency indicators can be used as the basis for setting stop loss cryptocurrency orders. These crypto indicators follow bitcoin price action of a bitcoin trading instrument closely and define the boundaries which the bitcoin prices should move along in. When the bitcoin price moves outside these boundaries it is therefore best to close the open cryptocurrency trades because bitcoin price stops moving in that particular direction.
Some of the Technical cryptocurrency 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 bitcoin price stop loss
The Parabolic SAR provides excellent exit points.
In an upwards bitcoin trend, you should close long trades when the bitcoin price falls below the Parabolic SAR indicator
In a downwards bitcoin trend, you should close short trades when the bitcoin price rises above the Parabolic SAR.
If you are long then the bitcoin price is above the parabolic SAR, the SAR will move up every day, regardless of the direction in which the bitcoin price is moving. Amount the Parabolic SAR indicator moves up depends on the amount that bitcoin 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 bitcoin price action. The middle band is a basis for the intermediate term bitcoin 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 bitcoin 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 cryptocurrency orders are set just above or below the support or resistance.
- Buy Bitcoin Trade - Stop Loss Bitcoin Order set few pips below the support
Buy BTCUSD Trade - Stop Loss Bitcoin Order set a few pips below the support
- Sell Bitcoin Trade - Stop Loss Bitcoin Order set a few pips above the resistance
Sell BTCUSD Trade - Stop Loss Bitcoin Order set few pips above the resistance
