BTC/USD Forex Signal

Yesterday’s signals were not triggered, as the price did not quite reach the resistance level identified at $3,847.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm Tokyo time today.

Long Trades

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $3,593 or $3,450.

  • 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 $3,847, $3,914 or $4,100.

  • 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 we were seeing a considerably more bearish picture with the price having printed several new lower resistant levels and noted that the price was showing short-term bearish momentum. I was ready take a bearish bias from another rejection of $3,847 if it happens. This was a good call as the price made a high there just slightly under that level, so it was an accurate approach.

The price is now consolidating below the resistance at $3,847. I would like to take a bearish bias below the lows, but it looks like there is too much potential support there as $3,593 is approached. I think the most likely outcome will be for the price to remain between $3,847 and $3,650 or so. The best opportunity is most likely to be another bearish rejection of $3,847 which could be used for a short trade entry – I would take a bearish bias at that point if it were to happen.

BTCUSD

Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

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.