Yesterday’s signals may have produced a losing short trade from the bearish doji candlestick which rejected the resistance level identified at $7,675.
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 $7,676 or $7,461.
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
Yesterday I had no directional bias, seeing a ranging environment which was equally likely to produce opportunities in both directions at conservative profit targets. This is broadly correct, although it seems that the bulls are getting an edge as they manage to break resistance and the flattening out of the long-term downwards movement which I noted earlier this week becomes more pronounced. The price is currently basing at the new higher support level of $7,675 which may hold, although I do not have much faith in it, so be extremely careful if you are trying to go long off a bounce at this level – I would not want to see any hourly closes below that level at all to make a long trade possible.
A sustained break above $7,825 would be a key bullish sign.
There is nothing due today concerning the USD.