BTC/USD Forex Signal - 23 January 2019

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 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.