BTC/USD Crypto Signal
Yesterday’s signals were not triggered, as there was no bullish price action at $3,914.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo 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 $3,741, $3,641, or $3,571.
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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 Trades
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Short entry after a bearish price action reversal on the H1 time frame following the next touch of $3,914 or $4,100.
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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 I would be bullish following a healthy bounce at $3,914 or following a sustained break above $4,100. I noted that the price had room to rise beyond $4,100 for some way until it would meet the next resistance level. This was a fairly good call, at least good enough to keep out of trouble, as the price failed to rise and crashed down below the support and out of the bullish channel just a few hours ago. This is a bearish sign, but the price is really just back at a recent base so I would not want to get bearish while the price is still above $3,741 which is likely to be the pivotal level today. I suspect there will be better opportunities over the days ahead and the price will need to settle now before finding direction, unless it does break below $3,741 in which case, I would take a bearish bias.
Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 5pm London time.
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.
