BTC/USD Forex Signal - 6 May 2019

Adam Lemon

Last Thursday’s signals were not triggered, as there was no bearish price action that day when $5,513 was reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm Tokyo time Tuesday.

Long Trades

  • Long entry at a bullish price action reversal on the H1 time frame following the next touch of $5,513 or $5,376.

  • 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 Trade

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $5,669 or $5,777.

  • 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 last Thursday that I would take a bullish bias if the price could trade above $5,355 for a couple of hours on above-average short-term volatility, at least until $5,513 is reached. It eventually did so and then went on to rise by a further $400 per coin, so this was a good call and I was correct to look towards the bullish side.

We have a medium or maybe even long-term bullish trend here, although it is relatively weak, however the price has sold in what appears to be a distributive style at about $5,800 on high volatility which is a bearish sign, or at least a sign that trading is going to be messy and action not strongly directional. The lower resistance level printing at $5,669 is a bearish sign, so if the price stays below that level all day today, we will then be likely to see a deeper pullback.

I would avoid trading Bitcoin today.BTCUSDThere is nothing important due today concerning the USD.

About the Author
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.
Learn more from Adam in his free lessons at FX Academy

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