Yesterday’s signals produced both a profitable long trade and a profitable short trade. The price is still falling so it may be wise to hold tight to any remaining profits on the short trade.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time, 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 $6,447 or $6,268.
Place 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 $6,671 or $6,805.
Place 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 if the price could break above the resistance at $6,850 then it had room to rise all the way to the psychological level of $7,500 without encountering any obvious obstructions. I had a bullish bias today provided the price remains above $6,671. This worked out well, as did the support and resistance levels, which held almost perfectly with accompanying obvious price action to confirm the turns. Bitcoin has been respecting its technical support and resistance levels, and it has tended to do this over recent months, making it quite attractive to technical traders. However, the strong trends and massive price movements may be a thing of the past, at least for a while, and the break we have seen now of support suggests that the price is most likely to move down to the area around $6,500. I have a bearish bias today.
There is nothing important due today regarding the USD.