BTC/USD Forex Signal - 29 May 2019

Yesterday’s signals produced a long trade from the bullish inside candlestick a few hours ago on the hourly chart which rejected the support level at $8,435.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered prior to 5pm Tokyo time Thursday.

Long Trades

  • Long entry at a bullish price action reversal on the H1 time frame following the next touch of $8,436 or $7,830.
  • 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 $8,893, $9.003, or $9,238.
  • 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 yesterday that the recent new high just under $9,000 presented a much more bullish picture. and that the short-term price action remained quite bullish, as there had only been a shallow bearish retracement.

I thought there was every reason to be bullish here in line with the long-term trend. I was ready to 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.

We got this bounce a few hours ago and it remains to be seen what will happen, but the price has risen a little. As long as this support at $8,436 holds, it makes sense to be bullish and hope for new higher highs at $9,000 and above.

btcusd

There is nothing important due today concerning the USD.

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.