BTC/USD Crypto Signal
Yesterday’s signals produced a temporarily profitable long trade yesterday from the bullish price action rejecting the support level identified at $6,538. The trade is just about in profit but is moving very slowly so is becoming increasingly risky.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered prior to 5pm Tokyo time, over the next 24-hour period only.
Long Trade
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Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,546.
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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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Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,805.
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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.
I wrote yesterday that the action still looked relatively bullish, but I had no directional bias. The price did move up, with the recent key pivotal level continuing to act as support and resistance around $6,500. I also said yesterday that the price needs more time and more bullish action before it can become possible to be more confidently bullish. I think this is still true as moves seem to take a long time to happen, or happen in sudden spikes, making this somewhat difficult to trade. As there has been mild bullishness for a while, it feels as if a break below $6,500 could produce a sharper move downwards as long trade stops would be uncovered.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by the ISM Non-Manufacturing PMI at 3pm. There will be a release of Crude Oil Inventories data at 4pm, and finally the FOMC Meeting Minutes at 7pm.
Author
Adam Lemon
DailyForex.com
Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
