BTC/USD Forex Signal

Last Thursday’s signals provided an excellent short trade following the bearish price action at $10,131. It would probably be wise to be fully profitably exited from that trade by now.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm Tokyo time, over the next 24-hour period only.

Long Trade

• Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,356.

• Place the stop loss 1 pip below the local swing low.

• Move the stop loss to break even once the trade is $200 in profit by price.

• Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.

Short Trades

• Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,131 or $10,696.

• Place the stop loss 1 pip above the local swing high.

• Move the stop loss to break even once the trade is $200 in profit by price.

• Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.

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

I wrote last Thursday that I had only a slight bearish bias as the buying is quite bouncy near the support level at $9,375, but that it would not be a surprise if the resistance at $10,131 holds. Although my bearish bias was slight, it was correct, and the obviously bearish double inside bars formation when the level was rejected during the first half of the London session provided an excellent short trade entry, with an obvious exit target at the first support level around the $9,300 area. The price has since made a double bottom of $8,500 from where it has risen and even printed new support at $9,356 very close to where a nearby support level was located last week. Despite this bullish development, the bulls’ situation looks weak. I do not take a directional bias, but it feels like if there is a strong movement it will be bearish rather than bullish.

There is nothing due regarding the USD.