BTC/USD Forex Signal - 28 May 2019

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Yesterday’s signals were not triggered as the bearish price action at $8,893 was not sufficiently bearish to trigger a short trade entry.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trade

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $8,436.
  • 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 Trades

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,893, $9.003, or $9,238.
  • 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 the price has been rising and has continued to rise to a new 1-year high.

Bitcoin had almost doubled in value in recent weeks and this new high just under $9,000 presented a much more bullish picture.

This analysis holds and the short-term price action remains quite bullish, as there has only been a shallow bearish retracement. In fact, it is more of a consolidation than a retracement as the price has just been going sideways underneath the nearest resistance level of $8,893.

There is every reason to be bullish here in line with the long-term trend. I would take an immediate bullish bias if the price were to retrace to the nearest support at $8,436 and make a strong upwards bounce there.

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.