BTC/USD Forex Signal - 4 September 2019

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Bitcoin: Bulls are still winning

Yesterday’s signals were not triggered as there was no bearish price action when the price reached $10,562.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken before 5pm Tokyo time Thursday.

Long Trade Ideas

  • Long entry at a bullish price action reversal on the H1 time frame following the next touch of $10,461, $10,258, $9,982, or $9,801.

  • 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 Trade Ideas

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $10,921 or $11,112.

  • 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 the technical picture had become considerably more bullish, but the resistance level just above the price at $10,562 also looked very solid and important. I thought bulls should have a slight edge, so I was prepared to take a bullish bias if we had gotten a solid bullish bounce following a retracement to $10,254.

Unfortunately, the low of the day was a little higher than that level, but I was correct to look towards the bullish side as the price advanced for another day.

It looks like we are getting a bearish retracement which will take the price back down towards the two support levels and the broken trend lines. I would be prepared to again take a bullish bias if we get a solid bullish reversal bounce at either of those two support levels today.BTCUSDThere is nothing of high importance due today concerning 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.
Learn more from Adam in his free lessons at FX Academy