BTC/USD Forex Signal - 9 January 2018

By: DailyForex.com

Yesterday’s signals gave a long trade from the bullish doji candlestick which rejected the support level identified at $14,222 – however it would already have been stopped out at break even.

 

Today’s BTC/USD Signals

Risk 1.00% per trade.

Trades must be taken before 5pm Tokyo time, during the next 24 hours only.

 

Long Trade

· Go long after a bullish price action reversal on the H1 time frame following the next touch of $14,222.

· 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.

 

Short Trades

· Go short after a bearish price action reversal on the H1 time frame following the next touch of $15,548 or $17,900.

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

· 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 was correct yesterday in seeing the level at $14,222 as extremely attractive for a long trade. Unfortunately, the bullish move did not take off strongly and lost momentum quite quickly. The technical picture is unchanged, with the price in a wide and gently bullish channel. The consolidative mood is still there, with the major cryptocurrency action now in Ethereum, which is making new all-time high prices. On Bitcoin, I have a slightly bullish bias.

BTCUSD

There is nothing important due today regarding 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.