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Bitcoin/USD Forex Signal - 28 August 2017

By 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.

Last Thursday’s signals were not triggered as neither of the key price levels were reached during that session.

Today’s BITCOIN/USD Signals

Risk 0.75% per trade.

Trades may only be entered by 5pm New York time today.

Long Trades

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $4185.67, $4041.91 or $3985.44.
  • 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.

BITCOIN/USD Analysis

The price rose strongly at the end of last week, but narrowly failed to make a new all-time high. The price pulled back over the weekend, but has bounced bullishly over recent hours from the new flipped support level at $4185.67, although the rise from there has not been stronger than the previous fall, so it is not fully convincing.

The long-term outlook and trend are certainly bullish, and new all-time high prices look probable over the next week or so. However, for two weeks now the price has remained within a wide range, and a gently bearish trend line can even be drawn connecting the two recent major swing highs. If the price fails to make a new high beyond these soon, and if the support levels at $4185.67 and $4041.91 do not hold up, this will be a sign that the pair is due a deeper, major bearish correction.bitcoin

There is nothing due today regarding the USD.

Adam Lemon
About 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.

 

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