BTC/USD Forex Signal - 23 April 2019

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Yesterday’s signals produced a losing short trade following the rejection of $5,345 by the bearish pin candlestick on the hourly chart.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm Tokyo time Wednesday.

Long Trades

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $5,355, $5,184 or $4,824.
  • 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 $5,645, $5,777, or $5,950.
  • 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 yesterday that I was cautiously bullish above $5,184 and I would be fully bullish above $5,345. This was a great call as the price has continued to advance and flip resistance levels, once broken, into new probably higher support levels. There is no reason to be bearish. A look at the price chart below shows how cleanly Bitcoin is tending to respect the obvious support and resistance levels, with the next resistance capping the spike up almost to the pip.

The price may consolidate now, I would wait until the price gets established above $5,645 before taking any new long trades, unless there is a pullback and a strong bullish bounce at $5,355.

btcusd

There is nothing important 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.