BTC/USD Crypto Signal
Yesterday’s signals were not triggered, as the bullish price action took place just a little below the support level identified at $3,568.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm Tokyo time today only.
Long Trades
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Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3,563 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 $3,732 or $3,914.
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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 yesterday we could now expect the level just below $3,570 to probably be supportive.
I had no bias, but I thought that if $3,568 held as support then we may be seeing the final leg of a bullish “over and under” pattern begin to form.
I was broadly correct about the support, which was a few dollars lower than I expected but still held. However, the bulls look relatively weak, so I have little confidence in an upwards move from here. For bulls, holding the support at $3,563 will be crucial, but a sustained break below that level and the lower triangle trend line would be a more convincing bearish sign. I would take a bearish bias down to $3,450 if get this bearish break.
There is nothing due today regarding 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.
