BTC/USD Forex Signal: Narrow Range

Adam Lemon

BTC/USD: Awaiting breakout from $9,233 - $9,015 range

Yesterday’s signals were not triggered as none of the key support and resistance levels identified have been reached yet.

Today’s BTC/USD Signals

Risk 0.50% per trade.

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

Long Trade Idea

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $9,014.

  • Place the stop loss $50 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 $9,233, $9,400, or $9,462.

  • Place the stop loss $50 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 yesterday that I saw the best potential opportunity as a long trade from a bullish bounce at $9,014 which would ideally reject the confluent round number just below at $9,000 with the same movement. This did not set up so it was not an effective call, but I think it can apply again today as the price has held above $9,014 for another day which makes the technical picture a little more bullish still.

The past day has seen the price consolidate within a narrow range between $9,014 and $9,233. I think a bullish breakout is more likely than a bearish breakdown, so I will be happy to take a long trade from a firm bullish bounce at $9,014. Conversely, two consecutive hourly closes below $9,000 will be a bearish signal and could trigger a sharp fall.BTCUSDConcerning the USD, there will be a release of the ADP Non-Farm Employment change forecast at 1:15pm 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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