BTC/USD Forex Signal - 18 December 2017

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

Today’s BTC/USD Signals

Risk 1.00% per trade.

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

Long Trades

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $17,881, $17,286, $16,697or $16,000.

  • 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.

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

The bullish move last Thursday took a while to get going, which would have made my forecast miss out. In the end the strong price rise continued, and the strength intensified after some new support levels were established above $16,000. The weekend saw the price really get going, eventually making a top new all-time high price at $19,666 not far off the psychologically key $20,000 level. I blogged yesterday about how we can expect some turbulence if that level is reached, based upon what happened previously when $10,000 and $15,000 were touched for the first time.

The outlook is still bullish, although the price has 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 holds, the price should make another attempt at $20,000 soon. I maintain a bullish bias.BTCUSD

There is nothing important due today concerning the USD.

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.