BTC/USD Forex Signal - 13 May 2019

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Last Wednesday’s signals were not triggered, as there was no bullish price action when $5,950 was reached that day.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may be taken before 5pm Tokyo time Tuesday.

Long Trades

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $6,811, $6,679, $6,441 or $6,171.

  • 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 $7,186 or $7,685.

  • 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 last Wednesday that a move down to the second support level at $5,667 looked quite possible, but I would be ready to take a bullish bias if there were a strong bounce there. I would also consider taking a short trade if there were another test and convincing rejection of $5,950. The support level mentioned was never reached and there was no bearish price action at $5,950.

The picture has simply become strongly bullish since last Wednesday, with the price making a 30%+ rise in value to its peak yesterday. It is true that there is new lower resistance formed over the past few hours by bearish price action, but we now have a strong rise coupled with a clear long-term bullish trend in a speculative asset.

There is no reason not to be bullish, and I would take a bullish bias if we get a firm bullish bounce at any of the blue support levels shown in the price chart below.BTCUSDThere 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.