BTC/USD Forex Signal - 11 February 2019

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Last Thursday’s signals produced a losing short trade from the bearish rejection of the resistance level identified at $3,379.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm Tokyo time Tuesday.

Long Trade

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $3,274.
  • Place the stop loss 1 pip below the local swing low.
  • Adjust the stop loss to break even once the trade is $50 in profit by price.
  • Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.

Short Trades

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $3,470, $3,428, or $3,379.
  • Place the stop loss 1 pip above the local swing high.
  • Adjust the stop loss to break even once the trade is $50 in profit by price.
  • Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.

 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 Thursday that I was not particularly bearish, but the odds did seem to be with the bears, so a strong reversal at a rejection of $3,379 would be a bearish sign that lower prices were about to happen, if it set up. It did set up and was followed by a downwards move on low volatility. Unfortunately, the accurate call was interrupted by the kind of sudden, strong, out-of-the-blue reversal that Bitcoin has been prone to over recent months, with the price rising by more than $300 in only a few hours. The picture is more bullish now, and the three former resistance levels have now probably become support. The price is within a relatively wide area without any key levels, so short-term direction is very hard to predict now. I have no directional bias right now.

BTCUSD

There 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.