BTC/USD Forex Signal - 5 July 2018

Yesterday’s signals produced a temporarily profitable long trade yesterday from the bullish price action rejecting the support level identified at $6,538. The trade is just about in profit but is moving very slowly so is becoming increasingly risky.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered prior to 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 $6,546.

  • 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 $6,805.

  • 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 the action still looked relatively bullish, but I had no directional bias. The price did move up, with the recent key pivotal level continuing to act as support and resistance around $6,500. I also said yesterday that the price needs more time and more bullish action before it can become possible to be more confidently bullish. I think this is still true as moves seem to take a long time to happen, or happen in sudden spikes, making this somewhat difficult to trade. As there has been mild bullishness for a while, it feels as if a break below $6,500 could produce a sharper move downwards as long trade stops would be uncovered.BTCUSD

Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by the ISM Non-Manufacturing PMI at 3pm. There will be a release of Crude Oil Inventories data at 4pm, and finally the FOMC Meeting Minutes at 7pm.

Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.