BTC/USD Crypto Signal
Yesterday’s signals were not triggered as none of the key levels were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered prior to 5pm Tokyo time Thursday.
Long Trades
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Go long at a bullish price action reversal on the H1 time frame following the next touch of $3,936, $3,876 or $3,804.
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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 $4,374.
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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 yesterday that the picture was looking even more bullish, with the short-term price action telegraphing that higher prices were likely over the course of the day. As it happened, the major move was upwards, but the price again topped just above the psychologically important $4,000 area.
There is no change – this is a bullish consolidation threatening higher prices, the question is whether sellers or profit-takers will hold the $4,000 area as resistance. If the price can make new highs for about 3 hours, I think that it will continue higher as the line of least resistance is certainly upwards.
Regarding the USD, there will be releases of the FOMC Statement, Economic Projections, and Federal Funds Rate at 6pm London time, followed by the usual press conference half an hour later.
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.
