BTC/USD Forex Signal - 27 February 2018

Tuesday, 27 February 2018 10:22

By: DailyForex.com

Yesterday’s signals were not triggered, as there was no bearish price action at $9,886.

 

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered prior to 5pm Tokyo time, within 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 $9,886.

· 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

· Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,894 or $11,191.

· 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

Yesterday I noted the triple bottom forming at $9,374 which may provide a supportive floor. Also, a break up above $9,886 could see a reasonably strong bullish movement develop quickly. I was a little late, but this was the way to go, as the price used that level as support to drive a powerful breakout above the bearish wedge pattern, all shown in the price chart below. This picture is now considerably more bullish, and I have a bullish bias, yet there are two resistance levels close by which may halt or reverse this advance. The higher level at $11,191 looks the stronger of the two.

btcusd

Regarding the USD, there will be a release of Core Durable Goods Orders and testimony before Congress by the Chair of the Federal Reserve at 1:30pm London time, followed by CB Consumer Confidence data at 3pm.

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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