Yesterday’s signals produced a profitable short trade following the bearish inside candle rejecting the resistance level at $6,309, but it would probably be wise to close out with profit.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm Tokyo time, over the next 24-hour period only.
Long Trade
Go long after a bullish price action reversal on the H1 time frame following the next touch of $5,777.
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 Trades
Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,309 or $6,563.
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 I was still bullish and that we should wait for a couple of resistance levels to be broken before even starting to think about turning bullish. Although the first resistance level was broken yesterday, the price rejected the slightly higher level at $6,309, although it has not fallen very far from there, and it looks doubtful that it will fall much further. I’m not sure as to the more likely price direction today and would simply watch how the price reacts if and when it reaches the next level, whether that is support or resistance.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.