BTC/USD Forex Signal: Sold at $10,400 - 13 February 2020

Adam Lemon

BTC/USD: Still bullish above $10,000

Yesterday’s signals may have produced a losing long trade from a bearish rejection of $10,440.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken prior to 5pm Tokyo time Friday.

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $10,018, $9,651 or $9,522.

  • 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 bullish price action reversal on the H1 time frame following the next touch of $10,440, $10,921, or $11,112.

  • 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 yesterday that while I preferred to take a bullish bias, the next step was to see how the price behaved now between $10,440 and $10,018. I thought that a long trade from a solid bounce rejecting $10,018 and ideally $10,000 also was the best opportunity that we can hope for here.

This was not a big deal, the price continued to test the resistance at $10,440 before finally failing and selling off from there on higher volatility, which is a sign that a deeper bearish pullback is now more likely to happen.

I still see long trades from bounces at support levels as the best opportunities to watch out for, especially at $10k, but the technical picture is a little more bearish today. If the price gets established below $10k that would make the picture considerably more bearish and suggest that the bullish trend would be in danger.BTCUSDConcerning the USD, there will be a release of CPI (inflation) data at 1:30pm London time.

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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