BTC/USD Crypto Signal
Yesterday’s signals were not triggered, as there was no bearish price action at either $3,732 or $3,914.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time Wednesday.
Long Trades
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Long entry at a bullish price action reversal on the H1 time frame following the next touch of $3,830 or $3,732.
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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 $50 in profit by price.
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Remove 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to ride.
Short Trade
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Short entry after a bearish price action reversal on the H1 time frame following the next touch of $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 $50 in profit by price.
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Remove 50% of the position as profit when the trade is $50 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 had just seen a change of tone with a relatively strong bullish push breaking up past former resistance though so far, the move has been held by the resistance at $3,732 which looked likely to be the day’s crucial pivotal level. If the price could trade above that level for a couple of hours later, I was ready to take a bullish bias as we would then be likely to see further upwards movement, with enough empty space stretching all the way to $3,914. This was a good call, as the price did trade above the level and continued to rise from there, getting as high as $3,950 at one point. The rise over the past few days is relatively strong compared to recent flat action, and there is no resistance until $4,100 so I would take a bullish bias if the price can trade above $3,950 for a couple of hours later today. There are good technical reasons to be taking a bullish bias here.
There is nothing of high importance 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.
