For all those people, who are capable of reading the technical charts, they certainly have a brighter chance of earning good money from bitcoin trading. The charts are definitely helpful enough and they become just the guide a trader needs. However, there are instances, where these charts even go wrong.
It can be said that the candles or the bars in the chart hit the wrong levels more than the right ones. This is where a trader can also get trapped at times. With the help of this article, you will be able to learn about how to earn even in the wrong movement of the candles in the chart. Below mentioned are the ways, with which people can maximize their profitability.
There are three things to be taken into consideration in a bitcoin chart: upper breakout, no trading zone and the lower breakout.
No trading zone is the range bound area, in which the price prevails. It simply means that the prices will not take a big turn. So, normally, it is recommended to not do any trading when the price is in this range.
When the graph is moving towards the upper side and breaks the resistance line, it is said to be upper breakout. Here, the prices are supposed to rise. In case, if the graph starts falling from the breakout point, it signifies the false breakout. In such circumstance, a trader should do opposite. Instead of buying, he should short to earn profits.
Similarly, when the graph is towards the downside and breaks the support levels, the ideal call is to sell the stock. However, in the context of a false breakout, people should reverse their trades and buy instead of selling. In such situations, people can make good returns.
When people are unable to spot such false breakouts in the bitcoin price today, they end up with losses. This is simply because they keep on anticipating for the prices to take a turn, which actually never happens. Again, if people are aware of what to do exactly in such adverse circumstances, they can easily earn in all situations.