Yesterday’s signals produced a profitable long trade following the bullish pin candle rejection of the support level at $3934.40. It would probably be wise to take further profit or close out completely if another top is formed at $4201.58.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm New York time today only.
Protect any open trade by 6:30pm.
Long Trades
- Long entry after bullish price action reversal on the H1 time frame following the next touch of $3934.40, $3872.58, or $3706.34.
- 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.
Short Trade 1
- Go short after bearish price action reversal on the H1 time frame following the next touch of $4201.58.
- Place the stop loss 1 pip above the local swing high.
- 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
We saw the price fall yesterday with some short-term bearish impetus, but the price was finally held at the support level of $3934.40, before making a short-term high at $4201.58. The action looks bullish over both the long and short-terms, but if the price fails to clear the new resistance level at $4201.58, the short-term outlook will become more bearish.
There is still an amazing long-term bullish trend, possible even a strong bubble, so be very careful taking the short trade entry if it sets up.
Regarding the USD, there will be a release of Building Permits data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm and FOMC Meeting Minutes at 7pm.