Yesterday’s signals were not triggered as the low of the day was slightly higher than the support level I identified at $3,936.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken before and 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 $3,936, $3,876 or $3,804.
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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 run.
Short Trade
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Short entry after a bearish price action reversal on the H1 time frame following the next touch of $4,374.
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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 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 that the picture is now generally more bullish, with no resistance to halt a further advance until $4,374. However, the price action of recent hours has suggested a topping out at about $4,000. It looked likely that the day’s pivotal level would be $3,936 – a strong bounce here and I would take a bullish bias.
This was a very good call as the low of the day was just slightly above that support. I say the picture now looks more bullish still, with the short-term price action telegraphing that higher prices are likely over the course of today.
Regarding the USD, there is nothing of high importance due today.
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