What is a Bitcoin Trend?
A bitcoin trend is the tendency of bitcoin prices to move in one specific direction for a certain period of time.
Bitcoin Trading bitcoin trading prices generally move in trends, the bitcoin trend direction can either be upward or downwards.
Bitcoin Traders use bitcoin trading tools such as bitcoin trend lines to identify bitcoin trends.
Bitcoin Trend lines help to define entry and exit points for trades that are open by cryptocurrency traders.
The bitcoin trend line define the btcusd trading market bitcoin trend & as long as bitcoin trading prices continue to move within the bitcoin trend line the traders will keep their trade open. Bitcoin traders will only close their open bitcoin trade once the bitcoin trading prices stop moving within the bitcoin trend lines.
The two types of bitcoin trends are:
Upward Bitcoin Trend - Drawn using an upward bitcoin trend line
Downward Bitcoin Trend - Drawn using a downward bitcoin trend-line
Upward Bitcoin Trend
Tutorial: How to Draw & Trade Upwards Bitcoin Trend
Drawn using an upward crypto trendline
Downward BTCUSD Trend
Tutorial: How to Draw and Trade Downward Bitcoin Trend
Drawn using a downward crypto trendline
The MetaTrader 4 software provides charting tools for drawing trends on cryptocurrency charts. To draw cryptocurrency trend on crypto charts traders can use the bitcoin trendline plotting tool provided in MetaTrader 4 software that is shown below.
Definition and Meaning of a Crypto Trend & How to Trade a Crypto Trend
To draw a bitcoin trend line in MT4 platform and choose point A where you want to start drawing and then point B where you want the it to touch. You can also right click on the trend-line and on the properties option choose the option to extend the ray by ticking the 'ray check box', if you don't want to extend it, then uncheck this option in your bitcoin trading platform.
The bitcoin trend is your friend. Is a popular saying among bitcoin traders because you should never trade against it. This is the most reliable bitcoin trading method to trade Bitcoin Trading because once bitcoin prices start to move in one direction they can move in that direction for quite some time in what is known as a trend.
Principles of How to Draw and Define Bitcoin Trend
Use bitcoin candlestick charts
- The points used to draw the bitcoin trend are along the lows of the bitcoin price bars in a rising market. An upward bullish bitcoin trend move is defined by higher highs and higher lows.
- The points used to plot are along the highs of the bitcoin price bars in a falling downwards market. A downwards bearish bitcoin trend move is defined by lower highs & lower lows.
- The points used to draw the bitcoin trend lines are extremes points - the high or the low bitcoin trading price. These bitcoin trading price extremes are important because a close beyond the extreme tells bitcoin traders that the bitcoin trend might be changing. This is an entry or an exit bitcoin trade signal.
- The more often a bitcoin trend is touched by bitcoin trading price but it's not broken, then the more powerful the bitcoin trend signal.
