BTC/USD Forex Signal - 20 August 2018

Adam Lemon

Last Thursday’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 entered before 5pm Tokyo time, over the next 24-hour period only.

Long Trades

  • Go long after a bullish price action reversal on the H1 time frame following the next touch $6,171 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 $6,671 or $6,805.

  • 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 last Thursday that the long-term picture showed a bearish trend which was slowly weakening away to almost nothing. Over the medium-term, we saw fluctuating bullishness with bearishness. These developments have been making Bitcoin increasingly hard to trade profitably. I had no directional bias, although I noted that the bulls looked like they have a slight edge over the bears.

This was all accurate, and since then, we have seen the price remain broadly flat, staying within its established range and not even touching any of the nearest key levels. Therefore, I still have no directional bias, and have little to say except that this pair is very flat and challenging to trade.BTCUSD

There is nothing important due today concerning the USD.

About the Author
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.
Learn more from Adam in his free lessons at FX Academy

Currency Pairs:
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