BTC/USD Forex Signal

Yesterday’s signals produced a short trade from the bearish inside candlestick which rejected the resistance at $5,355 on the hourly chart. This trade would still be open but looks more likely to be a loser than a winner.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may be taken at any time prior to 5pm Tokyo time Friday.

Long Trades

Go long at a bullish price action reversal on the H1 time frame following the next touch of $5,261 or $5,230.

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 $5,513.
  • 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 as there was a medium-term weak bullish trend, and for that reason plus yesterday’s bullish flip, I was prepared to take a bullish bias if the price retraced to $5,230 and made a strong bullish bounce there.

I was correct to make a bullish call as the price has continued to rise, although it has only risen by a very small amount. The nearby resistance at $5,355 has held so far and looks likely to be today pivotal point.

I would take a bullish bias if the price can trade above $5,355 today for a couple of hours on above-average short-term volatility, at least until $5,513 is reached.

btcusd

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