BTC/USD Forex Signal - 19 November 2018

Last Thursday’s signals produced a losing long trade from the bullish inside candlestick which broke up after rejecting the support level identified at $5,376.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm Tokyo time today, 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 $5,100, or $4,982.
  • 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 $5,645 or $5,777.
  • 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 last Thursday that we were seeing here a strong and dramatic push down, with the price reaching a new 1-year low. Although there were signs the move is over, at such lows it would be foolish not to anticipate a more bearish picture. I therefore took a bearish bias that day if the price traded below yesterday’s low price for more than one hour. This was a good approach as the price did dip below the low but quickly rebounded. However, the situation looks more bearish still now, with the price reaching yet lower 1-year lows. I would take a bearish bias today below $4,982 but I think it could be that there is a long-term buying opportunity here for investors as we are close to the psychologically crucial $5,000 mark. This kind of thing should only be done if you are comfortable with long odds, as the odds are in favour of downwards movement now.

BTCUSD

There is nothing important due today regarding 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.