BTC/USD Forex Signal

Tuesday, 23 January 2018 9:50

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.

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