BTC/USD Forex Signal - 28 February 2018

Wednesday, 28 February 2018 13:24

Yesterday’s signals were not triggered, as there was no bearish price action at $10,894.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken before 5pm Tokyo time, over the next 24-hour period.

Long Trade

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $10,481.

  • 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 $11,191.

  • 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

Yesterday I took a bullish bias due to the powerful breakout from a bearish wedge pattern, but I noted an area of resistance at about $11,000 which might halt the advance. This turned out to be a correct approach, as the price continued to rise, invalidating the first resistance level, but turning bearish at the round number. On its way up, the price carved out a new obvious, higher support level at $10,480 which has already been hit but may hold again for another bounce. I am still bullish, provided the price remains above $10,481, but I note there is now a descending trend line which can connect the two swing highs which matches a lower trend line to form a symmetrical bearish channel, so the price is likely to be within a wide bearish channel now. A break up above $11,191 is unlikely but would be a very bullish sign.BTCUSD

Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.

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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