BTC/USD Forex Signal

Last Thursday’s signals could have been triggered by the large doji candlestick producing a profitable bullish trade, but the action would probable not have looked attractive to most traders at the time.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trades

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $3,936, $3,876 or $3,804.

  • 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 Trade

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $4,374.

  • 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.

Great trade opportunities are waiting. Don't miss it!
TRADE NOW

BTC/USD Analysis

I wrote last Thursday that the price needed a breakout on high volatility and when it eventually comes it should be worth riding it. This was a good call as after an initial huge doji candlestick, the price broke upwards to make a high above $4,000, printing higher support levels along the way.

The picture now is generally more bullish, with no resistance to halt a further advance until $4,374. However, the price action of recent hours has suggested a topping out at about $4,000. It looks likely that today’s pivotal level will be $3,936 – a strong bounce here and I would take a bullish bias, but if the price breaks below I would avoid any long trades unless $3,876 survives a test from above later on.BTCUSDRegarding the USD, there is nothing of high importance due today.

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.