BTC/USD Forex Signal - 8 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.

Long Trades

Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3,914 or $3,741.

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

Short entry after a bearish price action reversal on the H1 time frame following the next touch of $4,100 or $4,373.

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 as the price had printed new support levels and was also well established within a bullish price channel., it looked likely that the pivotal level would be at $3,914. This was OK as the price remained within trend lines and the horizontal levels, making a relatively gentle and slow bearish retracement, so we do not have a strong reason to stop being bullish. The signs are all weakly bullish and I would take a bullish bias later if there is a bullish bounce at $3,914. A sustained break above $4,100 would be a more bullish sign yet.
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.