BTC/USD Forex Signal - 13 March 2019

Yesterday’s signals may have produced a short trade from the semi-doji candlestick on the hourly chart which rejected the resistance level at $3,876 during yesterday’s New York session. The action is very slow but still looks slightly bearish so there is probably not a strong reason to exit the trade yet.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken prior to 5pm Tokyo time Thursday.

Long Trades

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $3,804 or $3,552.

  • 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 ride.

Short Trades

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $3,876 or $3,969.

  • 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 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 yesterday that bulls and bears now seemed to be evenly balanced despite the move up from $3,800, with the price currently just below two resistance levels. I ignored $3,858 but thought that $3,875 could be more interesting although I only wanted to take a directional bias after breaks, not reversals.

This was mostly a good call as the price did make a bearish turn at $3,856 from where it is currently moving down to new short-term lows. I still think that the best approach is to be bullish when the price has got above $3,875 for a while or bearish once $3,804 breaks down convincingly and I also think that there is more potential on the downside than the upside.BTCUSDRegarding the USD, there will be releases of Core Durable Goods Orders and PPI data at 12:30pm London time.

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.