BTC/USD Forex Signal - 1 May 2019

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Yesterday’s signals were not triggered as there was no bearish price action when the resistance level at $5,235 was reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered until 5pm Tokyo time Thursday.

Long Trade

  • Long entry at a bullish price action reversal on the H1 time frame following the next touch of $5,230.
  • 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 $5,355 or $5,513.
  • 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 we had just had a day where the price hardly moved, just consolidated quietly in the same price area slightly below that resistance level at $52,35, so I was a little more bearish. I was at least right to be cautious, and we now see a more bullish picture with the price flipping that area to new higher support.

There is no long-term trend, although there is a medium-term weak bullish trend, and for that reason plus yesterday’s bullish flip, I am prepared to take a bullish bias if the price retraces to $5,230 and makes a strong bullish bounce there.

btcusd

Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time, followed by the FOMC Statement and Federal Funds Rate at 7pm and the press conference half an hour later.

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.