Last Thursday’s signals were not triggered as there was no bearish price action at $2611.42.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm New York time today only.
Long Trade 1
- Long entry after bullish price action on the H1 time frame following the next touch of $2607.71.
- Place the stop loss 1 pip 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.
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 last Thursday that although a downwards movement seemed more likely, a bullish drive with a breakout above the bearish flag remained a possibility, and this is the scenario which played out in the end. It was a very clear-cut break, as after the breakout, the price retraced to test the broken upper channel line from the other side, which held as flipped resistance to support, which is a bullish sign. There was also a flip of the horizontal price level around this area, which has produced a new likely support level at $2607.71.
The line of least resistance looks to be upwards. I see no strong and obvious resistance levels at which it would be worth attempting a short trade today, although a bearish trend line can be drawn from the major swing highs, and this is awaiting a third touch which could possibly be that start of some kind of downwards movement.
There is nothing due today regarding the USD.