BTC/USD Forex Signal

Monday, 12 February 2018 10:19

By: DailyForex.com

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 be entered until 5pm Tokyo time, during the next 24-hour period only.

 

Long Trade

· Long entry after a bullish price action reversal on the H1 time frame following the next touch of the supportive trend line currently sitting at about $7,917.

· 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 Trade

· Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,508.

· 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 last Thursday that if the price could get established above the medium-term bearish trend line at about $8,500, it would be a significantly bullish sign. It took another day or so for this to happen, but it has happened. The resilient recovery in Bitcoin after it looked down and out has been a technical surprise. The price is now a long way from support or resistance levels, but it is looking relatively bullish, and seems to be basing within a triangle. A bounce off the lower trend line of this triangle looks like the highest-probability trade which might set up today. I have a bullish bias against the long-term trend, simply because the strong rise of the past few days has an impulsive character, suggesting that it has further to run.

BTCUSD

There is nothing 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.

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