BTC/USD Forex Signal - 6 March 2019

Yesterday’s signals were not triggered, as there was insufficiently bearish price action at the first touch of the resistance level at $3,859.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm Tokyo time Thursday.

Long Trades

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $3,646 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 Trade

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $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 getting bearish here looked dangerous as we had major and probably strong support close below at $3,646. This meant that if the price could get established above $3,750 then I thought that it would be likely to move higher for some distance. This was a good call as after clearing $3,750 it did continue up before being stopped by the resistance I had placed at $3,859.

Today, if the price can trade above $3,859 for a couple of hours and show some bullish momentum there, I would take a cautiously bullish bias. If the price settled above $4,000 that would be a very bullish sign. Today the pivotal level is likely to be $3,859 but a move down from there currently looks unlikely.BTCUSDThere is nothing of high importance due today regarding 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.