Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered prior to 5pm Tokyo time Thursday.
Long Trades
- Long entry at a bullish price action reversal on the H1 time frame following the next touch of $5,441, $5,355, or $5,184.
- Put the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is $50 in profit by price.
- Remove 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.
Short Trades
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $5,645, $5,777, or $5,950.
- Put the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is $50 in profit by price.
- Remove 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.
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 the price may consolidate now, I would wait until the price got established above $5,645 before taking any new long trades, unless there was a pullback and a strong bullish bounce at $5,355. This was a good call as the price has fallen and is now trading within a wide consolidation after failing to rise above $5,645 but also printing new higher stairstep support at $5,441. I think the price is likely to consolidate between these two levels and may have already bottomed at this new support a couple of hours ago.
A break above $5,645 would be a very bullish sign if it happened today.
There is nothing important due today regarding the USD.