BTC/USD Forex Signal

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 may only be taken until 5pm Tokyo time Friday.

Long Trade

  • Long entry 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 $200 in profit by price.

  • Take off 50% of the position as profit when the trade is $200 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 $3,379 or $3,428.

  • Place the stop loss 1 pip above the local swing high.

  • Adjust the stop loss to break even once the trade is $200 in profit by price.

  • Take off 50% of the position as profit when the trade is $200 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 as the price had made a bearish turn and printed two new lower levels of resistance, and as the USD was also generally strong, I would take a bearish bias below the $3,340 level. Happily, this was a really good call as the price never got below that level, and has refused to fall, although the nearby resistance at $3,379 is still respected.

I am not particularly bearish, but the odds do seem to be with the bears, so a strong reversal at a rejection of $3,379 would be a bearish sign that lower prices are about to happen, if it sets up.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.