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BTC/USD Forex Signal - 8 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 the key level was never reached.

 

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

 

Long Trades

· Go long after bullish price action on the H1 time frame following the next touch of $3415.00 or $3327.31.

· 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.

 

BTC/USD Analysis

It is difficult to say much more than we have an extremely bullish situation, with the price trading in blue sky at new all-time highs, thanks to a huge amount of public interest in investing or speculating in this crypto-currency on the long side. There is a widespread feeling among analysts that this pair is in a dangerous bubble which could burst spectacularly. This may be the case, but that does not mean that traders cannot enjoy the party while it lasts, provided a hard stop loss and low leverage are used.

Technically, a new probable support level seems to have printed at $3327.31, which looks as if it could be an excellent buying point if the prices retraces to that level and then bounces bullishly. Due to the extreme bullishness of the current situation, I would even look to go long at $3415.00 which is a minor but new and very close level of potential support.

AUDUSD

There is nothing due today concerning 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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