BTC/USD Forex Signal - 4 February 2019

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Last Thursday’s signals were not triggered, as none of the key levels were reached that day. However, the resistance level identified at $3,470 has been accurate as the swing high since that time.

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.

  • 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 $3,470.

  • 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 last Thursday that the price looked likely to fall further following this failure to get established above the resistance at $3,470, but there may well be support at about $3,360. This was a reasonably good call as the price did continue to fall over the course of that day.

There is no change to the technical picture since last Thursday – the resistance at $3,470 held and the price has again fallen from there, but it is not making any significant lower lows, in fact the swing lows are getting higher. This suggests bulls and bears are quite evenly balanced at present. The price seems to be behaving technically so reversals at both support and resistance could be equally interesting. A strong bullish move which holds up above $3,470 would be a significant bullish sign.BTCUSDThere 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.