Last Thursday’s signals produced a profitable short trade from the bearish reversal by an hourly inside candlestick from the resistance level identified at $3,859 but the trade has so far given little more than the minimum $50 profit.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm Tokyo time Tuesday.
Long Trades
Go long at a bullish price action reversal on the H1 time frame following the next touch of $3,646 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 $3,859 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 last Thursday that the picture still looked very evenly balanced, so it was probably still worth avoiding trading this pair. This was a good call as the price remained within its range, testing the nearest resistance level which held very quickly. There has been a mall, slight bearish move down from here which could have produced a slightly profitable short trade.
There is no chance – the price really needs to break out of the current range between the nearest resistance and support levels and stay there before it will become interesting, but in the meantime its possible to take more of a risk and try to hold a rejection from one of the nearer key levels.
There is nothing of high importance due today regarding the USD.