BTC/USD Forex Signal

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

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken until 5pm Tokyo time Wednesday.

Long Trade

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3,470.
  • Put the stop loss 1 pip below the local swing low.
  • Move the stop loss to break even once the trade is $50 in profit by price.
  • Remove 50% of the position as profit when the trade is $50 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 $3,580 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 $50 in profit by price.
  • Remove 50% of the position as profit when the trade is $50 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 had become more bullish, and the three former resistance levels have now probably become support. The price was within a relatively wide area without any key levels, so short-term direction was very hard to predict.

The price has continued to gently sell off and seems to have printed a new lower resistance level at $3,580. This is likely to be today’s pivotal level and it would make sense to be bearish if the price keeps rejecting it from below.BTC/USDConcerning the USD, the Chair of the Federal Reserve will be making a minor speech at 5:45pm London time.

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.