BTC/USD Forex Signal: Bullish Trend Line

Adam Lemon

BTC/USD: $13,684 also looks pivotal

Yesterday’s signals were not triggered, as the reversals took place beyond both the nearby support and resistance levels.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be taken prior to 5pm Tokyo time Wednesday.

Long Trade Idea

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of the bullish trend line shown in the below price chart which is currently sitting at about $13,330.

  • 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 $13,682 or $14,058.

  • 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 long as the price stayed above the support level at $13,385, then all we have is a shallow bearish retracement which does not change the bullish picture, so this was likely to be the day’s pivotal point.

I was wrong although not strongly so, as the price got below that level but then made a bullish recovery. The nearest resistance level was almost respected but has to be adjusted slightly.

Despite the relatively light price movement over the past day I again reassess the technical picture as having become more bullish, due to the ascending trend line which can be drawn in the price chart below connecting the recent lows. This trend line, if returned to, gives a possible long trade entry point in line with the long-term bullish trend.

A break above $13,682 would be a mildly bullish sign while an unlikely break above $14,058 would be a very bullish sign.

If the price makes two consecutive hourly closes below the ascending trend line, that would be a bearish surprise and it might be worth taking a short trade entry there.BTC/USDRegarding the USD, voting is underway in the U.S. presidential election.

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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