Yesterday’s signals were not triggered, as the bullish price action at $9,003 was not strong enough to produce a long trade entry.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm Tokyo time, during the next 24-hour period only.
Long Trades
* Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,893 or $8,679.
* 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 Trades
* Go short after a bullish price action reversal on the H1 time frame following the next touch of $9,250 or $9,438.
* 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 yesterday that I had a bullish bias, although I did note that the action was quite evenly balanced. The price has broken below support and has used the long-term bullish trend line as resistance, which is a bearish sign. However, the price is still being supported at the round number of $9,000. The medium-term trend is bearish, and the action is bearish, but the round number may well hold. I would have a bearish bias if the price can break convincingly below $9,000.
Regarding the USD, there will be a release of PPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm.