BTC/USD Forex Signal - 19 December 2017

By: DailyForex.com

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

 

Today’s BTC/USD Signals

Risk 1.00% per trade.

Trades must be taken before 8am Tokyo time, within the next 24 hours only.

 

Long Trades

· Go long after a bullish price action reversal on the H1 time frame following the next touch of $17,881, $17,286, or $16,697.

· Put the stop loss 1 pip below the local swing low.

· Adjust the stop loss to break even once the trade is $200 in profit by price.

· Take off 50% of the position as profit when the trade is $200 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

I wrote yesterday that the outlook was still bullish, although the price had made a short-term lower high in recent hours, suggesting that a retracement to the support level at $17,881 is possible. If that level held, I thought that the price should make another attempt at $20,000 soon. As it turned out, the price has not moved much, neither retracing to the nearest support level nor really breaking up past $19,000. There has not been a new high for almost 48 hours and volatility is relatively very low. There is no reason to turn bearish yet, but as a bull who is keeping my bullish bias, I am a little concerned that we might not see a new high in the short-term. I think that ultimately the price will reach $20,000 within the next few days, but it might require a deeper retracement first. The chart below shows the price very close to a supportive trend line, and provided the price respects it and stays above it, there is no reason to think about changing a short-term bullish bias.

BTCUSD

Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.

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. Learn more from Adam in his free lessons at FX Academy.