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 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.