BREAKOUT IN CRYPTOCURRENCY TREND MOVEMENT
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Hello to everyone in this wonderful community and in this great platform at large. I greet you all in good spirit and I hope that you all are doing just fine today.
It is my pleasure to bring another great teaching to you all regarding cryptocurrency market trading and this time, I will be talking about Breakout in cryptocurrency trend movement. This is an important topic about trading cryptocurrency and it is vital to know this things before executing a trade in the cryptocurrency market.
Before we go beyond this I will like to emphasize more on Break out in cryptocurrency trend movement in other to give us more insight about what it entails.
WHAT IS A BREAKOUT IN CRYPTOCURRENCY TREND MOVEMENT?
Breakout in cryptocurrency trend movement is talking about a sudden change in asset value regarding a cryptocurrency in the market. It is mostly regarded as trend reversal in cryptocurrency trading market in which the price movement of an asset suddenly takes the opposite direction of the initial movement that was seen in the market.
This Breakout is mostly caused by the traders that are seen in the market. There is a great competition between the traders selling off a certain asset and those buying the said asset and when a particular asset has been on a particular trend for sometime then immediately a sudden rise or fall in the value of the said asset is noticed and it continue to move on the current trend movement, that scenario is regarded as a Breakout in trend movement.
Allow me to explain this in a lame man's language. For instance if the price value of an asset is on an uptrend and suddenly we notice a long red candle stick facing downtrend and then the price of the asset begins to reduce in value and continues in such manner, we can then attest to the fact that a Breakout has occurred in the cryptocurrency market.
Although Breakout can be of two types are it can either be a True breakout or a False breakout. I will also be emphasizing on these two types of breakout for further understanding of this topic.
WHAT IS A TRUE BREAKOUT IN CRYPTOCURRENCY TREND MOVEMENT?
A True breakout in cryptocurrency trend movement is regarded to as a real breakout that has occurred in which when a candle stick appears against a particular trend, it changes the trend movement to the opposite direction of the initial trend movement.
That is to say, when a cryptocurrency asset price value is in a downtrend and then a long green candle stick appears and it then continues in an uptrend movement breaking out from the previous downtrend movement, this is regarded to as a True breakout.
WHAT IS A FALSE BREAKOUT IN CRYPTOCURRENCY TREND MOVEMENT?
A False breakout is the opposite of the true breakout. It is seen as a scenario whereby an asset price value is on a downtrend and then a green candle stick appears trying to breakout the previous trend movement but couldn't and as such it then continues on the same trend movement as such the green candle stick that was noticed it said to as a false breakout.
It is always recommended that traders especially the small traders trading in the cryptocurrency market should pay attention to the breakout scenario. It is expedient to notice a true breakout in trend movement of an asset before executing a trade entry.
False breakout has been recorded to has caused losses and loss of traders assets in the cryptocurrency market trading. False breakout is initiated by big whales in the cryptocurrency market to lure small scale traders into their trap in other to sap from the small traders. It can also been seen as a great competition between the buyers and the sellers in the market trying to take control of the market and that can triggers a false breakout in trend movement of an asset.
All of these still bring us back to knowing our technical analysis regarding the market to be able to detect what is happened and what is likely to happen in the cryptocurrency market trading.
Thank you all for your time. I will see you soon.
Upvoted! Thank you for supporting witness @jswit.
Hi, @solexybaba, Where is your tweet share link? This the third and last time, how you are forgetting this.
Everyone doing here and also I don't send three reminders here to anyone except you.
Bro, please this is a campaign opened to promote steemit, and every one giving their bit be responsible and regular regarding that.
Sorry about that brother. Correction noted
https://twitter.com/SOLOMON89615131/status/1666668413744476160?t=1H0ypB925yZ48Dj_d0-aHg&s=19
Good remember to add in every post, 👍🏻.
Excellent information from you. I completely agree with you. By identifying breakout trends, we may easily earn some money by placing our nids accordingly. If the breakout is bullish, long trades will provide good returns in a short period of time.
In a similar way,if we break a trend reversal by placing shorts, we earn quick profits.
But there is a chance of fake breakouts, so we need to wait here until we get confirmation, then we can place our bids.
In your post, you explain it very well. Thank you so much.
Thanks for sharing with us. Take care of you.