Yesterday’s signals produced a long trade from the bullish pin candlestick which rejected the support level at $6,290 a few hours ago. This trade is in a floating loss and it is looking less likely to become a winner than it did at its opening.
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 Trades
Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,171.
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
Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,308 or $6,388.
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 take a cautiously bullish bias if the price could get above the resistance level at $6,388 for a couple of hours, as I saw that as likely to be yesterday’s pivotal level. This was a good call as the price was unable to even reach the level and it sold off from the highs quite consistently. The picture is more bearish as we have broken the recent lows and also printed new lower resistance at $6,308 and possibly at $6,829 as well. I would be bearish if $6,308 was rejected again, or the price was unable to rise above $6,289 over a few hours. Conversely, a sustained break above $6,308 would be a bullish sign.
There is nothing important due today concerning the USD.