Yesterday’s signals were not triggered as there was insufficiently bullish price action at $3,380.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm Tokyo time today.
Long Trade
Go long after a bullish price action reversal on the H1 time frame following the next touch of $3.018.
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 ride.
Short Trades
Go short after a bearish price action reversal on the H1 time frame following the next touch of the bearish trend line currently sitting at about $3,500 or $3,593.
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 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 the picture still looked bearish as long as the descending trend line held, and this was now confluent with horizontal resistance at $3,593 which looked like a very attractive level at which to find a short trade entry. I noted the support below as looking rather weak and unreliable. This was a good call as although the support shown in the chart has held the price up, it has done so very weakly. It may continue to hold but if the price can break below the lower trend line of the triangle, it could fall all the way down to the $3,000 area and make new long-term lows. I would be bearish at a reversal from the long-term trend line currently sitting at $3,500 or $3,592.
Regarding the USD, there will be a release of PPI data at 1:30pm London time.