BTC/USD Forex Signal

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Bitcoin: Consolidating triangle around $11,750 area

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

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades must be taken before 5pm Tokyo time Friday.

Long Trade Ideas

  • Go long at a bullish price action reversal on the H1 time frame following the next touch of $11,112 or $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 $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 a large technical space had opened up without any obvious key support or resistance levels between $11,112 and $12,804.

I was ready to take a bullish bias if we had gotten a firm bullish bounce at any of the support levels below following a further bearish retracement, but none of the support levels were reached.

The price is now consolidating within a symmetrical triangle formation, centred a little below $12,000. I would stand aside for the time being and would not pay much attention to a breakout from the triangle. I see the key thing to watch for as a bearish retracement to support at $11,112 and to watch carefully how the price reacts there: if it is a solid bullish bounce, I would take a bullish bias as the price has a lot of room to rise, all the way to $12,804.BTCUSDThere is nothing of high importance 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.