BTC/USD Forex Signal

Monday, 28 May 2018 8:49

Last Thursday’s signals produced a losing long trade from the bullish outside candlestick which rejected the support level identified at $7,314.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades can be taken until 5pm Tokyo time today, during the next 24-hour period only.

Long Trade

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,620.

  • 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

  • Short entry after a bullish price action reversal on the H1 time frame following the next touch of $7,418.

  • 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 last Thursday that I had no bias as I was expecting a bullish pull back to $7,825 and then a resumption of the long-term downwards trend, so I did not want to take any risks. My caution was excessive, as the bearish trend has continued strongly, breaking down below the cluster of support levels around the key psychological level of $7,500. Although the price has just found some support at a key inflective level at $7,162 I do not look to go long there as the bearish trend on all time frames is too strong. I have a bearish bias below $7,418.

BTCUSD

There is nothing due today regarding the USD. It is a public holiday in the U.S.A.

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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