BTC/USD Forex Signal - 12 July 2018

Yesterday’s signals were not triggered, as there was no bullish price action at $6,268, and the level at $6,178 was not reached until after 5pm Tokyo time.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm Tokyo time, over the next 24-hour period.

Long Trades

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,178 or $5,950.

  • 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 $6,268 or $6,465.

  • 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 I thought it was very unlikely that the price would be able to get above the resistance level at $6,445 today, and I was completely correct, with the price finally breaking down again below support and falling further. The price is now finding support at $6,178, but the picture looks very bearish and I have a bearish bias, although as the price is bouncing it may well rise over the next few hours. I think it is more likely that the support will be broken over the next 24 hours than that it will hold.

BTCUSD

Regarding the USD, there will be a release of CPI data at 1:30pm London time.

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.