BTC/USD Forex Signal - 26 April 2018

Yesterday’s signals produced a long trade entry from the bullish inside bar breakout just after the rejection of the support level identified at $8,679. The outlook for this trade is unclear as the bounce looks relatively weak so far.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Short Trade

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,192.

  • 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 Trades

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,427 or $8,154.

  • 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

I wrote yesterday that I had a bullish bias, which I was relatively confident about. I was completely wrong, the seeming halt to the sudden downwards movement was false, and the price has continued to move down and break through a couple of support levels, although $8,679 has held so far. The level at $9,192 has probably now become resistance. This unpredictable movement and the general increase in volatility and interest in Bitcoin makes me think that the price is likely to range for a while between levels, so I have no directional bias, and see convincing rejections of any key levels as probable good trades worth taking.BTCUSD

Regarding the USD, there will be a release of Core Durable Goods Orders at 1:30pm London time.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.