BTC/USD Forex Signal - 14 August 2017

Last Thursday’s signals were not triggered as the key support level at $3000.00 was never reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm New York time today only.

Long Trades

  • Long entry after bullish price action reversal on the H1 time frame following the next touch of $3934.40, $3872.58, or $3706.34.
  • Place the stop loss 1 pip below the local swing low.
  • Adjust the stop loss to break even once the trade is $50 in profit by price.
  • 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.

BTC/USD Analysis

We still have an extremely bullish situation, with the price recently trading in blue sky at new all-time highs, thanks to a huge amount of public interest in investing or speculating in this crypto-currency on the long side. There is a widespread feeling among analysts that this pair is in a dangerous bubble which could burst spectacularly. This may be the case, but that does not mean that traders cannot enjoy the party and make excellent profits while it lasts, provided a hard stop loss and low leverage are used.

Technically, we are now seeing a healthy and strong upwards movement resuming after a recent short-term consolidative triangle. The bullish breakout from that which is happening at the time of writing, is wringing the price only approximately $50 from its all-time high of $4190.00 which was made yesterday. I wrote at the end of last week that the price is so strongly bullish that it makes sense to buy at short-term dips to levels before $3000.00, and this turned out to have been good advice. However, we now have closer support levels, so it may be a better idea to wait for a pullback to any of those before looking to get long again.

This took out a key support level, so it is difficult to pinpoint a dip where the pair should be bought before $3000.00. However, the outlook is strongly bullish so buying on short-term dips generally is probably a good strategy to use right now, provided stops and low leverage are used.

There is no reason to consider any short trades yet.

BTCUSD

There is nothing due today concerning the USD.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.