BTC/USD Forex Signal
|Yesterday’s signals were not triggered, as there was insufficiently bearish price action at $9,508.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades can be entered until 5pm Tokyo time, during next 24-hours.
Long Trades
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Long entry after a bullish price action reversal on the H1 time frame following the next touch of either $9,508 or the broken bearish trend line currently sitting at about $8,863 respectively.
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Put the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is $200 in profit by price.
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Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to ride.
Short Trades
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Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,370 of $10,790.
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Put the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is $200 in profit by price.
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Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
BTC/USD Analysis
Yesterday I wrote that the action was still evenly balanced between bulls and bears, but I thought that the bulls would prevail over the short term, so I preferred long trades off bullish bounces at either of the two supportive trend lines below. My bullish bias was correct, as the price rose, initially rejected the resistant upper triangle trend line (as shown in the price chart below), but then quickly recovered to break out and advance strongly. There is good bullish momentum here, so I maintain my bullish bias, seeing the price as likely to continue to rise. However, the psychological level of $10,000 is not far away and could prompt some profit-taking if reached, although the last time this price was hit there was almost no reaction. Despite my bullish bias, I see a short trade at $10,370 or even the next level as possible later.
Regarding the USD, there will be a release of PPI data at 1:30pm London time.
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