BTC/USD Forex Signal: Bulls Maintain Small Edge - 4 March 2020

BTC/USD: Pivotal point at $8,682

Yesterday’s signals were not triggered as the bullish price action took place below the support level identified at $8,729.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Ideas

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,682, $8,375, or $8,216.

  • Put the stop loss $50 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 $8,995 or $9,275.

  • Put the stop loss $50 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 the market was ranging between $8,375 and $9,000 with the bulls having a slight edge. I thought it would be wise to stand aside until we got a breakout beyond one or other of those levels and this was a pretty good call as the range has continued to hold.

I would again stand aside for the time being from trading this currency pair except for taking a long trade at a bullish bounce at $8,682, as the bulls still have a very slight edge, but I would keep any long trade from here small.

Markets are generally volatile and unclear, which I think supports my analysis.BTCUSDConcerning the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time followed by ISM Non-Manufacturing PMI data at 3pm.

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.