Yesterday’s signals were not triggered as the bearish price action took place slightly higher than $11,804.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken before 5 pm Tokyo time Wednesday.
Long Trade Ideas
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $11,553, $11,407, or $11,185.
- 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.
- Remove 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 $11,804, $11,959, or $12,105.
- 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.
- Remove 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 I would take a bullish bias if we had gotten two consecutive hourly closes above $11,553 to the next resistance level, as the price chart suggested a bullish breakout beyond that level could see the price develop some bullish momentum.
This was a good call as this would have given a long trade entry at $11,665 which then went on to hit the next resistance level at $11,804 producing a profitable trade.
The technical picture is now more bullish, with the price having broken out to reach its highest level in about six weeks. However, the resistance level at $11,804 was able to hold the price and may now have produced a bearish double top reversal formation.
It is likely that the new support level at $11,553 will be strong, and also that we may see a bearish retracement, so I think the best approach here will be to look for a long trade entry from a bullish bounce at the nearest support level.
There is nothing of high importance due today concerning the USD.