BTC/USD Forex Signal - 24 December 2018

Last Thursday’s signals were not triggered, as there was no bearish price action when the price reached $4,055.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered and closed before 5pm London time today.

Long Trades

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $4,055 or $3,929.

  • 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 $4,374 or $4,982.

  • 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 last Thursday that the picture had become much more bullish than it was a few days ago. I thought it was quite likely that the resistance at $4,055 would hold for the rest of the day, but a break above it would be a very bullish sign. I took a generally bullish bias, but I wanted to see a sizable pull-back before entering any long trade yet. This was a good call, as the price has continued to rise, and it take a deeper pull back the next day before that rise could really happen.

There are reasons to remain bullish: the price is going up and printing higher support levels and has broken decisively above the former resistance at $4,055 and is trading above the high of many days. I take a bullish bias above $4,055 but the price could easily end today lower than it the price at the time of writing. The idea trade set-up would be a quick bounce at $4,055.BTCUSD

There is nothing important due today concerning 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.