BTC/USD Forex Signal - 29 May 2019

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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.

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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 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.