BTC/USD Forex Signal: Selling from $10k Area - 10 February 2020

Adam Lemon

BTC/USD: Retracement or trend change?

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

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trade Ideas

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,651, $9,522, $9,117, or $8,802.

  • 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 Idea

  • Go short after a bullish price action reversal on the H1 time frame following the next touch of $10,440.

  • Place 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.

BTC/USD Analysis

I wrote last Thursday that as long as the support at $9,522 continued to hold up, the outlook would continue to be bullish, due to the bullish trend and also to the fact that the price had room to rise to at least $10,000 before it would meet any obvious resistant area or level.

This was an excellent call, as the price did hold above that support level, and continued to rise to an area a little way below the $10k level which I mentioned as a target, before it started selling off quite strongly on increasing volatility, which is a good sign that at least this bullish wave, if not the entire bullish trend, is most likely over.

The next move is now much harder to predict, but a long trade from the new higher support level at $9,651 could be an interesting trade but would be unlikely to produce a move that went much higher than $10,000.BTCUSDThere is nothing of high importance due today concerning the USD.

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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