BTC/USD Forex Signal

Last Thursday’s signals were not triggered, as there was no bullish price action when $6,440 was reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered 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 $6,290 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 $6,388 or $6,441.
  • 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 I would take a bullish bias if we got a strongly bullish bounce from this nearby support level without the level breaking down. The price fell right through the level and has been generally moving down ever since, so it was a good call as the pivotal level for the day.

We see a general flattening out of the price and the absence of any strong long-term trend.

The medium-term trend is definitely bearish, with support levels breaking down continually, although it seems as if $6,290 has held.

I would take a cautiously bullish bias if the price can get above the resistance level at $6,388 for a couple of hours, as I see this as likely to be today’s pivotal level.

BTCUSD

There is nothing important due today concerning the USD. It is a public holiday today in the U.S.A.

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.