BTC/USD Forex Signal - 18 November 2019

Adam Lemon

Bitcoin: Wide bearish price channel persists

Last Thursday’s signals were not triggered, as none of the key levels were reached that day.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm Tokyo time Tuesday.

Long Trade Ideas

⦁ Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,102 or $7,754. 

⦁ Put 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

⦁ Short entry after a bearish price action reversal on the H1 time frame following the next touch of $8,703 or $8,893.

⦁ Put 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.

BTC/USD Analysis

I wrote last Thursday that the price was well within a symmetrical bearish price channel, with key resistance levels broadly holding. I saw the USD as strong, and markets having risk-off sentiment, with both of these factors likely to push down on the price.

I took a bearish bias on Bitcoin below $8,893 which turned out to be a good call as the price has fallen further from there.

My analysis outlined above still holds for today, with the only change to the technical picture being a slightly bearish one: the invalidation of the former support level near $8,400 which has clearly broken down. The price now has room to fall all the way down to $8,102 before hitting any major support.

I take a bearish bias today as long as the price is making new low prices below $8,630.BTCUSDThere is nothing of high importance due today concerning the USD.

About the Author
Adam Lemon

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

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