BTC/USD Forex Signal

Last Thursday’s signals produced a losing long trade following the bullish price action rejection of the support level identified at $4,137.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm Tokyo time today.

Long Trade

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3,338.

  • 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 Trade

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $4,126.

  • 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 although we were likely to see light ranging action for a while, I would still be very bearish below $4,000. This was a perfect call as this is exactly what happened. The price has just made a new 1-year low and has now fallen by more than 80% since last December. If that is not a reason to be bearish or at least look for short trades, then what is? I would very happily take a short bias after a bearish rejection of the resistance level at $4,126 later today.

BTCUSD

There is nothing important due today regarding the USD.

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.