BTC/USD Forex Signal - 1 November 2018

Yesterday’s signals produced a short trade from the bearish inside candlestick break on the hourly chart from the resistance level at $6,353. The price has not travelled far from the entry and I am not very optimistic about the success of this trade now as it is looking increasingly likely that the support level at $8,290 will hold.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken until 5pm Tokyo time today, over the next 24-hour period.

Long Trade

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,290.

  • 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 Trade

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,353.

  • 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 I would be bearish below about $6,230 or if we got a retracement and bearish rejection of the resistance level overhead at $6,289. The price did get a little way below $6,230 before moving upwards very strongly and quickly, so that wasn’t a good call. The good news is that the resistance level at $6,353 held the price very precisely, and there was a bearish break from there giving a short trade opportunity. The problem is that it hasn’t gone anywhere, and now it looks as if $6,290 will hold as support. The best I can say is that it looks very likely that $6,290 will be the pivotal level today, but I have no real directional bias.BTCUSD

Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.

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.