BTC/USD Forex Signal - 19 July 2018

Yesterday’s signals could have produced a long trade from the inside candle bullish rejection of the support level identified at $7,266. The trade would still be open but be at a slight floating loss as at the time of writing. It is probably still slightly more likely to become a winner than a loser.

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 Trade

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,805 or $6,671.

  • 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 Trade

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $7,675.

  • 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 the action had cooled off, but there was every reason to be bullish, and to see these recent strong upwards movements as significant. The support level at $7,266 has held, which is a bullish sign, but if the price does not make another upwards thrust within the next day or so I would start getting nervous. Although a break below that support and a sharp move down is technical possible, I still see the support as likely to hold and produce another rise, so I am bullish above $7,266.BTCUSD

There is nothing important due today concerning the USD.

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.