BTC/USD Forex Signal - 23 January 2019

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Last Monday’s signals produced a profitable short trade from the bearish pin candlestick on the hourly chart rejecting the resistance level at $3,550.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered between 8am London time and 5pm Tokyo time today only.

Long Trades

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $3,550 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 $3,593 or $3,732.

  • 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 Monday that the price was behaving very technically, there was no long-term trend, key levels were being respected. A move down over the next few hours looked like the most likely outcome, to the next support at $3,450. This was a good call and produced a profitable short trade.

The price currently looks much more finely balanced, with support and resistance levels extremely close by, so I would avoid trading this pair until we get at least one of these close levels invalidated or flipped.BTCUSDThere is nothing of high importance due today regarding the USD.

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.