BTC/USD Forex Signal - 23 January 2018

Yesterday’s signals were not triggered, as there was no bullish price action when the price first reached $10,694.

Today’s BTC/USD Signals

Risk 1.00% per trade.

Trades can be entered at any time.

Long Trade

  •  Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,976.

  • 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 $13,217 or $14,058.

  • 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 wrote yesterday that Bitcoin bulls are surviving, but only barely, clinging onto support near the psychologically important $10,000 levels. The situation now looks more bearish: the support level has been invalidated, and the dominant short and medium-term patterns of lower lows and lower highs continues. Looking at the price chart below we see a series (or at least two, anyway) of steepening bearish trend lines. So, today I have a slightly bearish bias.

The problem is a lack of obvious levels for taking a short trade. If forced to identify them, I think the round numbers at $11,000 and especially $12,000 could be interesting areas.

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.