Do you know how to use trendline breaks
Not often do you get an opportunity to show a real world example of a text book move - live.
Here's a simple educational post showing the two major types of breaks of the trend.
This is the current price level as of the 24th of Jan 2022.
You can see this as a corrective break - the main reason for this, is that the chart is only the 1 hour, whereas if you zoom out to the 4 hour you will see this move about to happen on the chart.
If you go back only a couple of days - you will spot this on the chart.
Here you can look at the Stochastic indicator and see what it's showing during the move up the trendline. How you can anticipate the break and even have a pretty good idea as to it being either corrective or impulsive ahead of time.
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If you are unsure of how to apply trendline or where they should go; take a look at this post below; click the image for the post.
Last year I managed to catch a live example of another text book move; this was the move down (distribution) on the Bitcoin move from 64k. Using slightly more advanced techniques. But it's similar core concepts at work. If you haven't seen the Wyckoff distribution post, again here's the link.
And Finally - the biggest dose of education you will find on tradingview_
I hope this is useful to you, if you are trading crypto right now.
Have a great week!
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
Here's a simple educational post showing the two major types of breaks of the trend.
This is the current price level as of the 24th of Jan 2022.
You can see this as a corrective break - the main reason for this, is that the chart is only the 1 hour, whereas if you zoom out to the 4 hour you will see this move about to happen on the chart.
If you go back only a couple of days - you will spot this on the chart.
Here you can look at the Stochastic indicator and see what it's showing during the move up the trendline. How you can anticipate the break and even have a pretty good idea as to it being either corrective or impulsive ahead of time.
--------------------------------------------------------------------------------
If you are unsure of how to apply trendline or where they should go; take a look at this post below; click the image for the post.
Last year I managed to catch a live example of another text book move; this was the move down (distribution) on the Bitcoin move from 64k. Using slightly more advanced techniques. But it's similar core concepts at work. If you haven't seen the Wyckoff distribution post, again here's the link.
And Finally - the biggest dose of education you will find on tradingview_
I hope this is useful to you, if you are trading crypto right now.
Have a great week!
Disclaimer
This idea does not constitute as financial advice. It is for educational purposes only, our principle trader has over 20 years’ experience in stocks, ETF’s, and Forex. Hence each trade setup might have different hold times, entry or exit conditions, and will vary from the post/idea shared here. You can use the information from this post to make your own trading plan for the instrument discussed. Trading carries a risk; a high percentage of retail traders lose money. Please keep this in mind when entering any trade. Stay safe.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.