BTC/USD Forex Signal - 6 May 2019

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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.

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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.

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.