BTC/USD Forex Signal: Bullish Breakout Close

Adam Lemon

Consolidating triangle breaks up.

Yesterday’s signals were not triggered, as none of the key levels identified yesterday were reached.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered 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 $15,507, $15,144, $14,946, $14,571, or $14,258.

  • 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 Idea

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $17,901.

  • 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 although the price was still within the technical consolidating triangle trendlines, the short-term action was bullish, and I wanted to wait for the breakout above the technical triangle and also the round number at $16,000 which may act as resistance as a psychological level.

I was ready to take a long trade if we had gotten two consecutive hourly closes later above $16,000.

This has not happened yet, but I think it was a good call, as the action has remained bullish after bouncing off the closest support level, which gave a chance to enter a nice pullback long trade which is currently in floating profit.

The price action has also invalidated the upper resistant trend line in the triangle formation we were seeing, so the price now has room to rise much higher without encountering any obstacles until it gets above $17,000.

Again, I will take a bullish bias today if we get two consecutive hourly closes between $16,000 and $16,600 later.BTC/USDConcerning the USD, there will be a release of CPI (inflation) data at 1:30pm London time, followed by a minor speech from the Chair of the Federal Reserve at 4:45pm.

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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