Yesterday’s signals produced an excellent, profitable long trade from the rejection of the support level at $7,287, which would still be open. It would probably be worth letting at least partial profits continue to run, as the action still looks bullish.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time today, over 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 $7,391 or $7,287.
Put the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is $200 in profit by price.
Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to ride.
Short Trade
Go short after a bearish price action reversal on the H1 time frame following the next touch of $7,825.
Put the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is $200 in profit by price.
Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to ride.
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 there was a long-term bearish trend, but this bullish break looked significant. If the level holds, the picture will become increasingly bullish, but if the price breaks down below it quickly, that will be a bearish sign. The level did break down for a short while, but the price turned strongly bullish at the lower support level at $7,287, which held to the pip and has produced a strong upwards move as “risk-on” sentiment re-establishes itself in the market. The picture now looks much more bullish, and the price still has a considerable space in which to rise, although there may be resistance already at about $7,600. I have a bullish bias today above $7,391.
Regarding the USD, there will be a release of Crude Oil Inventories data at 4pm London time.