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 Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
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