BTC/USD Forex Signal - 7 May 2019

|

Yesterday’s signals were not triggered, as there was no bearish price action at either $5,669 or $5, 777.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken until 5pm Tokyo time Wednesday.

Long Trades

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $5,777, $5,667, or $5,513.
  • Placethe 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 $5,950 or $6,171.
  • Placethe stop loss 1 pip above the local swing high.
  • Adjustthe 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.

Advertisement
Great trade opportunities are waiting - don't wait to profit from this pair!
TRADE NOW

BTC/USD Analysis

I wrote yesterday that although we have long-term bullish trend here, it is relatively weak, however and the distributive style at about $5,800 on high volatility was a bearish sign, so I was ready to avoid trading Bitcoin yesterday.

I was overly pessimistic, and this was a bad call – the price rose quite strongly after making a relatively minor bearish pull back.

The price is respecting technical levels which makes it attractive to trade, topping earlier at the resistance level of $5,950.

I would take a bullish bias today if the price makes a strongly bullish bounce at the nearest support level of $5,777.

BTC/USD Signal

There is nothing important due today concerning 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.