BTC/USD Forex Signal

Yesterday’s signals were not triggered, as there was no bearish price action at $3,870.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken at 5pm Tokyo time today.

Long Trade

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3,870 or $3,338.
  • 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 $4,126 or $4,374.
  • 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 the picture remained bearish with new lower resistance established at $3,870 although there were also signs of the price being supported at about $3,600 which made the picture very slightly less bearish than it was the day before. My conditions for taking a bearish bias were not satisfied which was good as the price rose and broke above the trend line shown in the price chart below, as well as the horizontal resistance level at $3,870 which has now probably become support. The price is coming up from new 1-year lows just a couple of days ago, so don’t expect much in the way of a rise, but the short-term action suggests the price is quite likely to rise a little more as long as it holds above the new support level at $3,870.

BTCUSD

Regarding the USD, there will be a release of Preliminary GDP data at 1:30pm London time.

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