BTC/USD Forex Signal - 7 February 2019

Adam Lemon

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.

About the Author
Adam Lemon

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.
Learn more from Adam in his free lessons at FX Academy

Currency Pairs:
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