Simple Strategy to Trade Cryptocurrencies following The Trend Line Breakout Trading Method
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Assalam-o-Alaikum Steemians !
I'm @moneyster, a professional level Cryptocurrency investor and an analyzer. As usual, today I thought to share another Crypto-related experience with you. I hope this article will be considerably beneficial for all the Steemians in this community
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Before understanding this Trend Line Breakout Trading Method, we should have a considerable knowledge about Trendlines and how to draw TrendLines in the chart. Therefore, here I will briefly explain the basic idea of TrendLines according to my understanding.
The Trendline can be defined as a line that combines more than 2 points in the Price chart with the help of historical price data. It means if we can see a significant swing low in the chart, we can easily draw a Trendline by connecting that swing low with the next swing low in the chart. After that, we can extend that Trendline moreover. Then, we can wait for the price movement until it reaches this extended trendline.
If the extended trendline can hold the price movement again, we can take it as a good support zone or a good price bounce. At the same time, if the price level breaks this Trendline, it becomes a resistance level for the price movement and it may tend to descend the price movement.
According to the above-mentioned Trendline Concept, here we have taken a profitable Strategy with the help of 3 swing lows or 3 swing highs. When the 4th price movement comes towards the extended trend line, it may possible to break the trendline and after confirming the Break and retest, we can easily take our entry.
This Trend Line Breakout Trading Strategy is very simple and reliable as compared to other indicators. In this Trend Line Breakout Trading Strategy, we can easily set our Take profit point with the help of extended Trendline and its related swing high or low. At the same time, by following the Trend Line Breakout Trading Strategy, we can easily set our Stop-Loss point with the help of extended Trendline and its related swing high or low. It means, that here we can easily follow a proper risk management method. The most interesting thing here is that we can get better rewards as compared to relatively low risk.
First of all, I will open BTC/USDT chart using the TradingView platform. Then we need to find proper swing lows or swing highs according to present and historical data in the chart. After that, we can easily draw the Trend line and extend it according to our requirements. I will further demonstrate it through the BTC/USDT chart.
Below I have demonstrated the Trend Line Breakout Trading Method as a result of a Sell setup. Here we can see the price level has bounced from the drawn Trendline 3 times and the 4th time it has broken the extended Trendline. At the same time, we can see a good retest for the Broken zone and I have taken the Sell entry when the formation of the next bearish candle.
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Below I have demonstrated the Trend Line Breakout Trading Method again as a result of a Buy setup. Here we can see the price level has been rejected from the drawn Trendline 3 times and the 4th time it has broken the extended Trendline. At the same time, we can see a good retest for the Broken zone and I have taken the Buy entry when the formation of the next Bullish candle.
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We can use these Trend Line Breakout Trading Strategy to get better and more accessible trading opportunities. However, we can try to combine this strategy with some other indicators to increase the winning percentage.
At the same time, as I said in my previous article, we should remember that all the indicators and strategies are not efficient completely as nothing we can find 100% efficient in the world. So, we should depend only on these strategies and indicators to confirm our trading opportunities.
I have studied the below-sourced articles to study these topics further, and I have explained all the above facts in my own words and experience.
10% benificiary set for @tron-fan-club
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https://twitter.com/moneyster12/status/1531906236190531584?s=20&t=YjWw9ERVOqm3qInCDxKixQ
good post and also interesting to see and also pay attention to Thank you for sharing here and of course this is a good thing for people
Thank you very much for your attention to my article. It really motivates me to write more such articles.
keep on giving the best
Thank you for contributing to the #LearnWithSteem theme. This post has been upvoted by @maazmoid123 using the @steemcurator09 account. We encourage you to keep publishing quality and original content in the Steemit ecosystem to earn support for your content.
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Thank you very much brother @maazmoid123 for your support. Highly appreciate it
Who would not want to check out you content? I came here again to get value from it as usual. You have nailed it yet again. Welldone friend.
Thank you very much for visiting my article. Your valuable comment is highly appreciated.
Asides from srrebullient, your content when it comes to crypto is top tier. I always visit your page when I want to get any knowledge on trading. Keep up the good work man I hope to learn more from you in the near future
Thank you very much for your attractive comment. It really motivates me to write more such articles here.
Yeah, i sure can see that we both talk about trading in crypto market. Thank you for a wrll detailed lesson regarding thr trendline trading. Greetings!
Thank you very much for your valuable feedback regarding my article. Greetings!