BTC/USD Forex Signal

Wednesday, 16 May 2018 9:04

Yesterday’s signals were not triggered, as there was no bullish price action at $8,334.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades can be entered until 5pm Tokyo time today, 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 $7,825.

  • 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 $8,334 or $8,593.

  • 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 although the situation looked a little bullish, it was better to stand aside. This at least prevented losses as the action turned much more bearish, with the long-term bearish trend line holding. The bears seem to be in full control now, with no key support levels close by, and new lower resistance levels above. For this reason, I have a bearish bias today. It is interesting to see how Bitcoin is behaving more and more like a Forex currency pair, and the exploding of the wild claims made in favour of Bitcoin a few months ago should be an important lesson. Bitcoin is not going to $100,000 any time soon!BTCUSD

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

DailyForex Newsletter
0 User Reviews

Registration is required to ensure the security of our users. Login via Facebook to share your comment with your friends, or register for DailyForex to post comments quickly and safely whenever you have something to say.

Log in | Create a DailyForex.com Account Now