BTC/USD Forex Signal - 29 April 2019

Adam Lemon

Last Thursday’s signals were not triggered, as the price cut quickly through every key support and resistance level which was reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm Tokyo time Tuesday.

Long Trade

  • Long entry at a bullish price action reversal on the H1 time frame following the next touch of $4,824.
  • 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 $5,235, $5,355, or $5,513.
  • 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 last Thursday that I thought that we were likely to see a pause in the medium-term bullish trend which we had seen in Bitcoin for some time now. I said that this meant it may be wise to stand aside from trading Bitcoin for a while. This was a really good call as the price made a sharp downwards movement and has been consolidating below new resistance at $5,235, which is a bearish sign.

There is no long-term trend, but the longer the price stays below $5,235 the more bearish I will be. A strong reversal from that level might be a good short trade entry, as that level looks likely to be today’s crucial pivotal point.

btcusd

There is nothing of high importance due today regarding the USD.

About the Author
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.
Learn more from Adam in his free lessons at FX Academy

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