BTC/USD Forex Signal

Last Thursday’s signals may have produced a long trade from the bullish inside candlesticks which rejected the support level at $3,936. If still open, this trade is no more than a coin toss, so it may be wise to exit it.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered from 8am New York time Monday until 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 or $3,876.

  • 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 $4,008.

  • 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.

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BTC/USD Analysis

I wrote last Thursday that the picture remained bullish following the break above $4,000. However, the price quickly made a sharp drop back below the $4,000 area but was held by the next support level at $3,936. Since then, the price has just ranged between these two nearest levels.

It would be wise not to take a directional bias, unless the price gets established above $4,008 (bullish) or below $3,936 (bearish).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.