Upward Bitcoin Trendlines and Channels
An upwards bitcoin trend line is drawn below the bitcoin trend pattern by connecting at least 2 lows. This upward bitcoin trend line will draw a line that show the general direction of the market.
The diagram below shows how bitcoin trading price moves when it is moving in a bullish market. The bitcoin trading price will move upward forming support regions.
Since the btcusd trading market moves in a zigzag manner traders normally draw a bitcoin trendline which shows the general upward direction of the market.
A up bitcoin trend occurs when the fore price will continue to make consecutive higher highs and higher lows. Each price high is going to be higher than the previous high - higher high , and each low is higher than the previous low - higher low.
BTCUSD Crypto Up trend-lines gain more validity each time bitcoin trading price touches this upward bitcoin trend line but does not penetrate it. A up bitcoin trend remains in place until this sequence of higher highs and higher lows is broken.
A down-side penetration of an upward bitcoin trendline is a technical sell bitcoin trading signal, and usually the first indication that an upward bitcoin trend may soon end.
Drawing an Upward BTCUSD Trend Line
When the btcusd trading market moves upwards it forms higher highs and higher lows forming a bullish market movement - Upward Bitcoin Trend. An upward bitcoin trend line can then be plotted by connecting these higher lows.
To draw this upwards bitcoin trend line setup we use supports. To draw the upward bitcoin trend line correctly two support levels are needed. When bitcoin trading price touches the upwards bitcoin trend line we buy and place stop loss cryptocurrency orders just a few pips below the upward bitcoin trend line. The diagram below shows an example of an upward bitcoin trend line.
The crypto upward bitcoin trend line setup will show the general direction of the market as bullish therefore traders will only open buy long cryptocurrency trades as long as bitcoin trading price is within this upward bitcoin trend bullish market setup and within the support areas. These support levels are the levels where if the btcusd trading market retraces then these points will provide strong supports for the bitcoin trading price. This is why many crypto buyers will wait until bitcoin trading price retraces downward & hits these retracements levels market the upward bitcoin trend line to open buy cryptocurrency trades. Bitcoin trades opened at this support levels have a high Risk to Reward Ratio with minimum draw down.
In the above upward bitcoin trend line cryptocurrency trading setup the trader would have opened buy/long cryptocurrency trades from the signals generated at the support1, support2, support3 and these cryptocurrency trades would have made a lot of profits with minimum amount of draw-down/retracement.
Upward Crypto Channel
An upwards crypto channel is plotted by plotting a line that's parallel to the upwards bitcoin trend line & then adjusted to touch the tops boundary of the bitcoin trading price movement. This then forms an upwards crypto channel and as long as the price stays between these two trading channels the bullish market movement will continue moving upwards.
Trading the Cryptocurrency Channel
This upwards crypto channel is used by cryptocurrency traders to show levels where it is best to take profits. Traders will take some profit once the bitcoin trading price touches the upper channel & wait for another retracement before opening a long buy trade again.
Bitcoin Trend Lines MT4 Bitcoin Trend Line Indicator
The MT4 Bitcoin Trend Line Indicator drawing tools to draw these bitcoin trend lines & crypto channels setups on the MT4 are located on the MT4 drawing tool bar within the MT4 platform, To access this MT4 tool bar if it is not activated on your bitcoin platform, Click in 'View' Next to the 'File' menu at top left corner of MetaTrader 4 platform and click View, Then Click on Toolbars, Then Check the 'Lines Tool Bar' by clicking on it.
Shown Below is the screenshot Image of the MT4 drawing tool bar. To draw a bitcoin trendline on a cryptocurrency chart just click this MT4 bitcoin trendline drawing tool and select the point where you want to draw the bitcoin trend line.
This is one of the learn cryptocurrency trading technical analysis lesson among the many learn bitcoin tutorials on this website located on the side navigation menu, where you will learn how to draw bitcoin trend lines & analyze these bitcoin trend lines setups.
