BTC/USD Forex Signal - 10 September 2019

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Bitcoin: Bearish consolidation below $10,500

Yesterday’s signals produced a short trade from the bearish reversal at $10,448. This traded would be in a small floating profit now and it would probably be wise to close it as soon as possible.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered prior to 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 $9,982 or $9,801.

  • 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 $10,476 or $10,921.

  • 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 the situation here had become more bearish, with the price breaking below support with some momentum. However, I thought that the support at $9,801 would hold, at least for a while, so this bearish move was probably mostly played out. I wanted to stand aside for a day. This was a good call as the price has not moved directionally by much.

We now have a bearish consolidation between $9,982 and the $10,500 area. I would be prepared to take a weak bearish bias if we get a bearish rejection following a retracement to $10,476 later today, targeting $9,982 as profit.

Despite my weak bearish bias, I still see $9,982 as quite likely to hold as support, and the level at $9,801 as very likely to continue to hold as support if reached.BTCUSDThere is nothing of high importance due today regarding the USD.

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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