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.
There is nothing of high importance due today regarding the USD.