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Bitcoin/USD Forex Signal - 29 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.

Yesterday’s signals were not triggered as none of the key levels were ever reached.

Today’s BITCOIN/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm New York time today.

Long Trades

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $4185.67, $4041.91 or $3985.44.
  • Put the stop loss 1 pip below the local swing low.
  • Move 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 run.

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

There has been little change from yesterday’s situation. The price has still not made a new all-time high, but broadly rose yesterday, although not by much. The rise is not very convincing and with the dropping off in volatility, the price might begin a period of consolidation. It is still within last week’s range.

The long-term outlook and trend remain bullish, and new all-time high prices still 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.BTCUSD

Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.

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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