BTC/USD Forex Signal - 27 March 2019

Yesterday’s signals were not triggered, as there was no bearish price action when the resistance level at $3,936 was reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered between 8am New York time Wednesday and 5pm Tokyo time Thursday.

Long Trades

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $3,936, $3,921, 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.

BTC/USD Analysis

I wrote yesterday that a look at the daily chart showed a slightly bearish picture, so short trades from rejections of resistance levels were likely to be the best bet – I was ready to take a bearish bias if $3,876 broke down convincingly or if the price retraced to $3,936 and strongly rejected that level.

In fact, the price turned around with the support at $3,876 continuing to hold, and recent hours have seen a relatively strong upwards movement which has probably flipped the former resistance levels at $3,936 and below to become new higher support. There are initial signs that the price may be topping out near $4,000 where is there is key resistance close by. If the price can close above $4,008 for a couple of hours, that would be a bullish sign.BTCUSDThere is nothing of high importance due today concerning the USD.

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.