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 $3,816 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 $3,969.
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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 the ongoing bullish move was weak and there was selling every time the price approached $3,900. However, we did have new higher support at $3,816 which looked relatively likely to be today’s pivotal level. If we got a bullish bounce there later, I was ready to take a bullish bias. This was a good call as it reflected what happened, but the bullish bounce at $3,816 unfortunately did not happen until it was too late, on Friday.
The picture remains weakly bullish as long as $3,816 continues to hold. I would take a weak bullish bias if there were a strong bullish bounce at that level following a bearish retracement.
Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time followed at 1:00am by a minor speech from the Chair of the Federal Reserve.
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.
