BTC/USD Forex Signal

Wednesday, 20 December 2017 8:29

By: DailyForex.com

Yesterday’s signals produced a losing long trade from a bullish inside bar break which rejected the support level identified at $17,881.

 

Today’s BTC/USD Signals

Risk 1.00% per trade.

Trades may only be entered between 8am New York time and 5pm Tokyo time, within the next 24 hours.

 

Long Trades

· Long entry after a bullish price action reversal on the H1 time frame following the next touch of $16,000 or $14,139.

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

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

· Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.

 

Short Trades

· Short entry after a bearish price action reversal on the H1 time frame following the next touch of $17,705 or $18,411.

· Place the stop loss 1 pip above the local swing high.

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

· Remove 50% of the position as profit when the trade is $200 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 I was getting a little concerned for the bulls as a deeper retracement might be about to happen. I noted the trend line was an important indicator to watch and as it was broken, the price fell quite strongly, which was a reason to change away from a short-term bullish bias. The price has fallen by about 17% from its all-time high, quite quickly, finally printing some probable resistance levels on the way down. A fall of 20% is psychologically significant, and is roughly confluent with the obvious support level and round number at $16,000 which has held so far. Bitcoin has reached a pivotal movement: $16,000 will either be a good level to buy at, or, if it breaks down, we are increasingly likely to see another sharp fall that could even go below $10,000. It is time for anyone trading or investing in Bitcoin to watch what happens to the price over the next day or so very closely. My bias will largely be determined by whether $16,000 holds.

BTCUSD

Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a DailyForex.com Account Now