BTC/USD Forex Signal - 13 August 2019

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Bitcoin: Bearish wedge remains supported by $11,112

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken before 5pm Tokyo time Wednesday.

Long Trade Ideas

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $11,112, $11,000 or $10,890.

  • 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 Trade Ideas

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $11,544, $12,804 or $13,176.

  • 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 I saw the major opportunity here as another bullish bounce at $11,112 which would be an attractive long entry opportunity as there is such a strong cluster of support levels at and below that price – I would have taken a bullish bias on Bitcoin if we had gotten this setup later.

The picture is not notably different technically so I would continue to take this approach, but it could be argued that it looks a little more bearish as we now have clear lower resistance formed at $11,544 and the price is contained within a wedge which has both upper and lower trend lines which are descending.

I would take a bullish bias if the price makes a bullish bounce later at $11,112.BTCUSDRegarding the USD, there will be a release of CPI (inflation) data at 1:30pm London time.

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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