BTC/USD Forex Signal - 5 September 2019

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Bitcoin: Bullish consolidation

Yesterday’s signals were not triggered as there was no bullish price action at $10,461.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered prior to 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 $10,258, $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 $10,921 or $11,112.

  • 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 it looked like we were getting a bearish retracement which would 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 had gotten a solid bullish reversal bounce at either of those two support levels.

This was a good call as it correctly anticipated how the price would move, but the nearest support level, which was reached did not produce a bullish bounce, and so it has become invalidated.

We are now seeing a bullish consolidation with aimless price movement between $10,258 and $10,951. I think higher prices are likely, but perhaps not today.

I would take a bullish bias if we get a retracement to $10,258 and a bullish bounce there later. This level is likely to be solid as it is confluent with the quarter-number at $10,250.BTCUSDRegarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by Crude Oil Inventories at 4pm.

Christopher Lewis has been trading Forex for several years. He writes about Forex for many online publications, including his own site, aptly named The Trader Guy.