BTC/USD Crypto Signal
Yesterday’s signals produced a losing long trade following the bullish inside candlestick on the hourly chart which rejected the support level identified at $6,171.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm Tokyo time today, over the next 24-hour period only.
Long Trades
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Go long after a bullish price action reversal on the H1 time frame following the next touch of $5,376, $5,100, or $4,982.
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Place 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 $5,777 or $5,950.
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Place 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 picture remained bearish with stronger downwards thrusts, and so the odds were slightly in favour of a continued descent down to the next support level at $6,171. I would take a bearish bias today below yesterday’s low price. This was a great call as the price fell by about 10% from below yesterday’s low price. The support at $6,171 initially held but soon broke down.
This is a strong and dramatic push down, with the price reaching a new 1-year low. Although there are signs the move is over, at such lows it would be foolish not to anticipate a more bearish picture. I would therefore take a bearish bias today if the price traded below yesterday’s low price for more than one hour.
Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time, and the Chair of the Federal Reserve will be giving a minor speech at 4:30pm.
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.
