Bitcoin/USD Forex Signal - 12 September 2017

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Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s BITCOIN/USD Signals

Risk 0.75% per trade.

Trades may only be entered until 5pm New York time today.

Long Trades

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $3974.75 or $3600.00.
  • Put the stop loss 1 pip below the local swing low.
  • Move the stop loss to break even once the trade is $50 in profit by price.
  • 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 Trades

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $4380.89 or $4779.06.
  • Put the stop loss 1 pip above the local swing high.
  • Move the stop loss to break even once the trade is $50 in profit by price.
  • 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.

BTC/USD Analysis

I wrote yesterday that the $4000.00 area has become very key: if it breaks, then we are in a Bitcoin bear market with a fall of more than 20% off the all-time high. Alternatively, if it holds, it could be a great buying opportunity.

Happily for bulls, the price has risen strongly from the lows near $4000.00, and has also convincingly broken up past the first bearish trend line shown in the chart below. Although it is now running into resistance which starts being felt at about $4350.00, Bitcoins looks more bullish now without any doubt. If the price goes on to break up above $4380.89, that will be an even stronger bullish sign.

BTCUSD

There is nothing due today regarding the USD.

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.