BTC/USD Forex Signal - 16 October 2018

Yesterday’s signals may have produced a long trade off the support at $6,353 which is in profit, but I do not feel confident about it.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may be entered until 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 of $6,353, $6,263, or $6,171.

  • 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 $6,679 or $6,811.

  • 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 after a huge spike like this it was probably best to stay away, although a long trade from a bounce at the new higher support of $6,353 might be interesting.

This was a pretty good call as we did get a very quiet long trade entry at $6,353 but the price looks only as if it is going to calm now, although I may be wrong. So, I take the same analysis today, thinking that the price here looks likely to consolidate after such a massive price spike which essentially went nowhere yesterday.

Still, due to the slightly bullish action plus the fact that the support at $6,353 held, I take a slightly bullish bias here above $6,353.BTCUSD

There is nothing important due today concerning the USD.

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.