BTC/USD Forex Signal

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Yesterday’s signals were not triggered as there was not any bullish price action at $8,451.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may be taken before 5pm Tokyo time Wednesday.

Long Trades

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $7,830 or $7,463 or $7,202.
  • 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 $8,153, $8,340, or $8,610.
  • 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 yesterday that despite the bullish recovery, the lower high at about $8,800 and the new lower resistance at $8,610 were bearish signs. I thought that bulls should remain encouraged but should be cautious due to this deep pull back. Overall, I thought that the odds would still tend to favour the bulls.

In fact, the bears have won out, pushing the price down quite far, although the support level at $7,830 seems to be holding. We have a major bearish lower high at $8,800 and this deep retracement makes the picture much less bullish overall, although the price is certainly in a long-term bullish trend still by any measure. As such, a long from this supportive area at $7,830 may be interesting. It is likely to be today’s pivotal level and if the price can get established below it, I think that would be a bearish sign and suggest we are not going to see $9,000 again soon.

btcusd

Regarding the USD, the Chair of the Federal Reserve will be giving a speech at 2:55pm London time.

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.