BTC/USD Forex Signal - 31 January 2019

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Yesterday’s signals produced a losing trade from the bearish pin candlestick which rejected the resistance level at $3,450.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken until 5pm Tokyo time today.

Long Trade

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3,274.
  • Place the stop loss 1 pip below the local swing low.
  • Adjust the stop loss to break even once the trade is $200 in profit by price.
  • Take off 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 $3,470.
  • Place the stop loss 1 pip above the local swing high.
  • Adjust the stop loss to break even once the trade is $200 in profit by price.
  • Take off 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 a bullish break above $3,450 over the next few hours would probably be a significantly bullish sign due to the bullish “over and under” price action formation, so I would take a bullish bias if the price traded above that level today for a couple of hours. This was a bad call, although the price barely did trade above the level before falling back.

The price is now back below the resistance which I’ve readjusted upwards to $3,470. The price looks likely to fall further following this failure to get established above the resistance, but there may well be support at about $3,360.

btcusd

There is nothing of high importance 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.