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BTC/USD Forex Signal - 9 October 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 Wednesday’s signals were not triggered, as there was insufficiently bullish price action at $4218.50, and the price never quite reached $4115.86.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 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 $4410.92, $4218.50, or $4115.86.
  • Place 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.
  • 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

  • Short entry after a strongly bearish price action reversal on the H1 time frame following the next touch of $4779.06.
  • Place the stop loss 1 pip above the local swing high.
  • Move 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

The price fell below the support level at $4218.50 and has risen firmly ever since, although not very strongly. Recent hours have seen some selling, but it is nothing unusual that breaks the bullish pattern. My recent bullish bias has proved to be correct and there is no reason not to stay bullish. Technically, the price remains with a clear medium-term bullish channel. A new support level has been printed at $4410.92, which is another bullish sign. I keep a firm bullish bias for now, and see no obvious resistance as likely before the $4750.00 area.

Today’s BTC/USD Signals

 

There is nothing significant due today concerning the USD. It is a public holiday in the U.S.A.

 

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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