BTC/USD Forex Signal

Yesterday’s signals were not triggered, as there was no bearish price action at $4,126.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trade

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $4,077, $3,870 or $3,338.
  • 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

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $4,374 or $4,982.
  • 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 yesterday that as the price was 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 suggested the price was quite likely to rise a little more as long as it holds above the new support level at $3,870. This was an accurate call and the price has not only risen, it has created new higher stairstep support at $4,077. The action now looks quite bullish, but the price will need to trade above the key resistance at $4,374. If it does so for a couple of hours, this will be a bullish sign, as the price has quite a long way it can rise without meeting any resistance, so I would take a bullish bias at that point.

BTCUSD

Regarding the USD, there will be a release of the FOMC Meeting Minutes at 7pm 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.