BTC/USD Forex Signal - 5 November 2019
Yesterday’s signals produced a short trade from the bearish rejection of the resistance level at $9,489 which has already made the minimum $200 profit to break even. It may be worth holding on in case there is a further bearish breakdown.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm Tokyo time Wednesday.
Long Trade Ideas
⦁ Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,893, $8,458, or $8,102.
⦁ Place 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 $9,489 or $10,440.
⦁ 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.
I wrote yesterday that as the consolidation pattern was continuing, I again would take a bullish bias if we had gotten a firm bounce at the support level of $8,893.
That level was never reached, but the consolidation within the range shown in my recent price charts has continued, with the upper level at $9,489 being firmly rejected a few hours ago. This arguably makes the consolidation at least a little less bullish.
This means that the best approach would probably now be to take a bullish bias above $9,489 and a bearish bias below $8,893. I suspect there may be more potential upside than downside, so a bullish breakout is likely to run further than a bearish one.Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.
- Currency Pairs