BTC/USD Forex Signal

Yesterday’s signals were not triggered, as there was no bullish price action at $3,870.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken 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 $3,886 or $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 ride.

Short Trades

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $4,055 or $4,374.

  • 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 yesterday that the price now was hard to call: it is medium and long-term bearish but over the short-term seemed to be close to making a bullish term. The key things to watch out for were whether the medium-term trend line shown in the chart below held, and also whether the support at $3,870 held. I would be bearish if the price trades below that latter level for a couple of hours. It did so, then traded as low as $3,750 before rising sharply, so this wasn’t a bad forecast.

The technical situation has not changed much: there is new support at $3,886 but the picture is still long and medium-term bearish. The descending trend line shown in the price chart below is quite confluent with the horizontal resistance at $4,055 so this might produce a key bearish turn if reached. I would be bearish if there is a reversal up there, or if the price can trade strongly below $3,886 for a couple of hours later.BTCUSD

There is nothing important due today concerning the USD.

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.