BTC/USD Crypto Signal
Yesterday’s signals were not triggered, as there was no bearish price action when the price reached $3,593.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time today 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 $3,593, $3,450, or $3,274.
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Put the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is $200 in profit by price.
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Remove 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 Trade
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Go short after a bearish price action reversal on the H1 time frame following the next touch of the bearish trend line currently sitting at about or $3,925 or $4,055.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is $200 in profit by price.
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Remove 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 we now had a more bullish technical picture, especially because the long-term bearish trend line had been broken to the upside. I expected that some kind of consolidation around $3,500 was probably going to be the most likely outlook over the short-term. I had no directional bias yesterday and preferred to sit on the side. I was correct to see the picture as more bullish, but I underestimated the bullishness. The picture is more bullish still, with another strong move and a break above former resistance. We now see the price holding up quite firmly and new higher support levels. I would take a bullish bias here today if we get a retracement back down to about $3,600 followed by a strong bullish bounce.
Regarding the USD, there will be a release of the FOMC Economic Projections, Statement, and Federal Funds Rate at 7pm London time followed by the usual press conference half an hour later.
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.
