If you’re trading currencies, chances are that you have heard of the term” Bitcoin Chart Patterns” at some point in your Forex experience. This is an extremely popular term that’s used all over the world for determining which trends are likely to occur in the markets. It’s a free tool that you can use on any Forex trading platform to identify and take advantage of these patterns. However, just what is it and why do people use it? These are the two most common questions I receive from those who are new to Forex trading.
The basic function of the Bitcoin chart is actually quite simple. It allows you to see which currencies can be purchased or sold based on which trend the vertical line is pointing to. It’s a very useful tool when combined with other charts, such as the candlestick charts. Candlestick charts allow us to look into the past to better predict future price movements. The trick is to look for price patterns that seem to repeat themselves in the Forex market.
This can be accomplished by utilizing two types of chart patterns: the Simple Moving Averages and the Simple Moving Average Convergence Divergence. You’ll probably already have the first type of chart, but if not then it’s usually easy enough to obtain. The SMA or the Simple Moving Average Convergence displays the price movement of a currency over a set period of time. The MA cycle typically peaks in late afternoon and early evening hours and then starts to taper off in late October or early November.
https://haihuayonline.com/what-is-hot-hotgraph While this looks like a simple graph, there are some major differences between this type of chart patterns and the more conventional technical analysis charts that are often utilized by traders. First, the MA chart tends to show a trend that repeats itself, rather than detailing price movements separately. This makes it much easier for novice traders who don’t have the experience necessary to interpret the data in order to make educated trades.
Secondly, unlike with the Simple Moving Average Convergence Divergence, the length of the SMA chart typically doesn’t peak and then fall. As the price of the currency increases, the value of the High Frequency Traders in the trading chart begins to rise, causing the volume of trading to increase even more. This causes the price of the commodity to climb higher, until by late October or early November the volume of trading has all but peaked out. At this point, traders realize that the price increase that was incurred has been short-lived and the prices should likely decrease soon.
If you use bar charts to track the opening and closing prices for a given time frame, you may notice a similar pattern. However, instead of a line drawing across the top of the chart, there is a vertical line that marks the high and low points for that frame. These price points are known as resistance levels and they form the pivot point between the trend line and the current price. When a price closes below this line, it means that the price dropped back down to break free of the trading range and open at new highs upward. Similarly, when a price closes above the resistance line, it means that the trading range has widened and the trendline has failed to break free of the previous highs and valleys.
