BTC/USD Crypto Signal
Last Thursday’s signals were not triggered, as none of the key levels were reached that day.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm Tokyo time Tuesday.
Long Trades
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Go long at a bullish price action reversal on the H1 time frame following the next touch of $3,732, $3,646 or $3,552.
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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 $50 in profit by price.
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Take off 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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Go short after a bearish price action reversal on the H1 time frame following the next touch of $3,830 or $3,969.
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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 $50 in profit by price.
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Take off 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 last Thursday that we would probably need a deeper pull-back before the price could continue its rise, so I would only take a bullish bias if we got a retracement to the support at $3,830 and a firm bullish bounce there. In fact, the price was able to rise much higher without such a deeper pull-back first, breaking up beyond $4,000 before falling back very sharply. The price is almost back within its comfort zone, so may do little now. The support at $4,732 seems to be holding, but it is likely that the level at $3,830 has become new resistance, so the price looks like it will not go anywhere today. I’d avoid this pair for the time being.
There is nothing of high importance 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.
