BTC/USD Crypto Signal
Last Monday’s signals were not triggered, as there was no bullish price action at $4,055 until after London had closed.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm London time today.
Long Trades
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Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3,593 or $3,450.
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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 run.
Short Trades
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Short entry after a bearish price action reversal on the H1 time frame following the next touch of $3,847, $3,914 or $4,100.
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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 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.
I wrote last Monday that there were reasons to remain bullish: the price is going up and printing higher support levels and has broken decisively above the former resistance at $4,055 and is trading above the high of many days. I took a bullish bias above $4,055 but noted that the price could easily end today lower. The price did spend the London session retracing and then rising again from an area near support but has fallen quite strongly since London closed that day, and we now have a more considerably bearish picture with the price having printed several new lower resistance levels, and the price is currently showing short-term bearish momentum. I would take a bearish bias from another rejection of $3,847 if it happens.
There is nothing important due today concerning the USD.
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.
