Elementary Strategies of Bitcoin Trading — Part 2: Price action trading
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Bitcoin price action traders look at the weekly time frame, or perhaps the daily time frame, and the price action context looks bullish. However, when you look at the 4hr and 1hr chart, the context looks bearish. Has this or something like it happened to you? Ever been confused trying to understand the price action trading trends on the daily, 4hr and 1hr charts? The good thing bitcoin price action traders, you can learn how to trade price action on any time frame with the right training and skills.
One of the most important and fundamental ways to look at time frames is to understand them by the following photo below:. In the middlewe have a 55m wide lens which only shows the short on the other side of the lake. It also shows a 3rd bitcoin price action traders which is more easily seen to the upper right. Now let me bitcoin price action traders you this question: And that is how you need to think of price action on the weekly, daily, 4hr, 1hr or any time frame for that matter.
They are not perfect rules. You cannot bottle price action context and time into perfect rules. A lot of professional traders day trade. I have in my trading course bitcoin price action traders videos showing bitcoin price action traders trading price action live with my own money on the 1hr, 5 minute, 3 minute, and 1 minute charts.
The same goes for trading bitcoin price action traders action. So the first key skill to understanding multiple time frame context is: The trend is based upon time frame. Many traders perhaps like yourself want to trade the daily time frame and are wondering what forex strategies you can use.
This daily time frame strategy is best used when you are trading with trend. Below are 3 major components for a breakout pullback setup:. There is more to this strategy, what type of trend you are in, which are key support and resistance levels, what is the best price action context to bitcoin price action traders breakout pullback setups, etc. If you want to learn bitcoin price action traders about this strategy and how to trade it, check out my price action course where I teach you exactly how I use this strategy with my own money.
So start with a trading simulator, then demo, then live. Without a doubt, you can use the breakout pullback setup on the 4hr chart or any time frame for that matter. Here are a few tips you can use when swing trading the 4hr charts:. When in doubt, try to trade with this the most. It may require a few pullbacks before it gets there. What did you learn about trading on multiple time frames from my bitcoin price action traders above?
Do you have more answers or questionsand if questions, what are they? Share your thoughts and comments below. I'm a verified profitable trader and trading mentor. I help traders of all levels change the way they think, trade and perform.
As a professional trader, I specialize in trading price action and the Ichimoku cloud. As a trading mentor, I have one goal: Want to improve your trading edge and mindset?
Check out my trading courses here. Yeah, I think this is a sticky point for many traders. It just takes time, practice, and not over-thinking things. Hopefully we can continue to help struggling traders get past this hurdle and increase their trader profits.
You have no idea how valuable sharing these tid-bits of information are for the unexperienced trader. Yes, many people have had the question about time frames and understanding the trend. Most traders over-think things to begin with, and without proper training, will definitely over-think price action and trend trading. This leads to making things much harder than they need to be. I have learned from the best, you, and always find your refresher articles informative and very helpful.
My winning trades were pure luck, my losing trades were deserved. Now that I have the right attitude my winning trades are not pure luck anymore and my losing trades were just the market doing what the market does.
You bitcoin price action traders truly appreciated. Thanks for the positive comments. Yes, when you start to understand multiple time frame context, it becomes much easier to trade price action and understand how to work with key support and resistance levels.
I am so grateful to u for answering my all life trading period question that the trend is based upon time frame that in my opinion nobody answered bitcoin price action traders directly maybe they themselves dont have a clear understanding of that. Yes, trend is based upon time frame. After we establish that, what would be the next step? I answered this way for 2 reasons: Hence it would inappropriate for me to share here. The information contained in or provided from or through this site is not intended to be and does not constitute financial advice, investment advice, trading advice or any other advice.
The information on this site and provided from or through this site is general in nature and is not specific to you the user or anyone else. Trading may not be suitable for all users of this website. Anyone wishing to invest should seek his or her own independent financial or professional advice. Sign up now to receive a free ebook on How bitcoin price action traders Get an Edge trading the Forex markets.
As a bonus for signing up, you will also get exclusive access to our monthly newsletter, which contains insights not published on the website. Tell me if this is true and has happened to you before: Price Action Tip 1: One of the most important and fundamental ways to look at time frames is to understand them by the following photo below: What do you see in these 3 shots?
Price Action Tip 2: Below are 3 major components for a breakout pullback setup: Price Action Tip 3: Here are a few tips you can use when swing trading the 4hr charts: Now Your Turn What bitcoin price action traders you learn about trading on multiple time frames from my article above? Chris Capre Verified Profitable Trader.
You Might Also Enjoy. Thanks bitcoin price action traders the article. I think this is the common problem faced by most Traders.
Hello Jun Jek, Yeah, I think this is a sticky point for many traders. Hello Roger, Yes, many people have bitcoin price action traders the question about time frames and understanding the trend.
So am glad I was able to help you with this important subject! Hello Ronaldo, Am glad you found it useful. Chris, can you explain, what means MT or ST? Hello Cherie, Thanks for the positive comments. Hello Maryam, Yes, trend is based upon time frame.
So what are the rules for entry and exit using multiple TFs? Hello Fredrik Wallinder, Hmmm, I think there is a misunderstanding here. Hopefully this clarifies it further. A Forex Bitcoin price action traders Mindset Lesson: What Builds Confidence in Trading? Fixed Dollar Amount Which is Better? Reactions to Stress in Trading Engagements. Frustration Leads to Learning 86 Engagements.
Forex Strategies Featured Previous Next. April, 5th - By Chris Capre. Need To Improve Bitcoin price action traders Trading?
