BTC/USD Forex Signal - 30 January 2019

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm Tokyo time today only.

Long Trade

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $3,274 or $3,018.

  • 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 Trade

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $3,450 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 yesterday that the picture remained slightly bearish, but the action was quite dull, and I doubted there would be any good opportunities here today, so I took no bias. This was an OK call as nothing much has happened here.

The price has remained below the resistance at $3,450 which is a bearish sign but has failed to move down and in fact has printed some bullish price action with the final leg of a bullish “over and under” pattern seeming to form. As such, a bullish break above $3,450 over the next few hours would probably be a significantly bullish sign, so I would take a bullish bias if the price trades above that level today for a couple of hours.BTCUSDConcerning the USD, there will be a release of the FOMC Statement and Federal Funds Rate at 7pm London time, followed by the FOMC Press Conference half an hour later.

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.