BTC/USD Forex Signal - 16 April 2018

By: DailyForex.com

Last Thursday’s signals might have produced a long trade entry following the bullish rejection of the support level identified at $6,793, which would have produced a spectacularly profitable trade.

 

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

 

Short Trades

* Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,250 or $8,272.

* 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.

 

Long Trade

* Go long after a bullish price action reversal on the H1 time frame following the next touch of $7,758.

* 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.

 

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

Last Thursday this pair looked very difficult to trade. Ironically it then made the strongest speedy directional move for some time, shooting up by more than 10%. Interestingly, after the movement, the price has held up and continued to advance further, which is a bullish sign. It is not clear there is any convincing explanation for the sudden move – a U.S. tax deadline is due this week, which is a possible factor, and twice as much Bitcoin was traded last Thursday as typically changes hands.

I now take a bullish bias, with the nearest support below looking very strong at $7,758. There are already signs that the price is being bought from the round number at $8,000 which might well have been today’s low price.

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Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.

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.