BTC/USD Forex Signal - 16 August 2018

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Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken from 8am London time to 5pm Tokyo time, during the next 24-hour period only.

Long Trades

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch $6,171 or $5,950.

  • Put the stop loss 1 pip below the local swing low.

  • Move the stop loss to break even once the trade is $200 in profit by price.

  • Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.

Short Trades

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,671 or $6,805.

  • Put the stop loss 1 pip above the local swing high.

  • Move the stop loss to break even once the trade is $200 in profit by price.

  • Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.

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 was unsure as to likely short-term direction here, as although we had some bullish momentum, this entire area between $6,500 and $6,805 looks likely to be difficult to break. This was a good call, as the price has spent more time rising than falling but was held by $6,600.

The long-term picture shows a bearish trend which is slowly weakening away to almost nothing. Over the medium-term, we see fluctuating bullishness with bearishness. These developments are making Bitcoin increasingly hard to trade profitably. I have no directional bias today, although it can be said that right now the bulls look like they have a slight edge over the bears.

BTCUSD

There is nothing important due today concerning the USD.

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.