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.
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.
There is nothing important due today concerning the USD.