BTC/USD Forex Signal - 16 May 2019

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Bitcoin makes another 10-month high price

Yesterday’s signals were not triggered as there was no bearish price action at $8,287.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken prior to 5pm Tokyo time Friday.

Long Trades

  • Long entry at a bullish price action reversal on the H1 time frame following the next touch of $7,582, $7,186 or $6,811.

  • 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 $8,436, $8,593 or $8,893.

  • 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 there was no reason not to be generally bullish just because we have had a day of consolidation. I would take a bullish bias above $8,350 or if there is a strong bullish bounce following a bearish retracement to the $7,582 support level.

There was no retracement to $7,582 but the price did briefly trade above $8,350 so this wasn’t such a good call (yet) as the price has pulled back and printed new lower resistance at $8,134 – this level is too fresh to be included within my resistance levels in the signal above though.

It makes sense to remain bullish, but a period of consolidation or a deeper retracement are becoming less unlikely scenarios. I would take a bullish bias following a retracement to and bullish bounce at the nearby support level of $7,582.BTCUSDRegarding the USD, there is nothing of high importance due today.

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.
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