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BTC/USD Forex Signal - 19 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 Monday’s signals were not triggered, as none of the key levels were reached during that session.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered between 8am London time and 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 $5409.57, or $4911.53.

  • 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.

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

Although the price still has not been able to exceed the all-time high it made exactly one week ago, and has dipped below two recent support levels while reaching as low as $5100.00, the picture still looks bullish. The support at $5409.57 has reasserted itself, and provided the price does not get much below $5100.00 I will remain bullish on Bitcoin for some time yet.

We do have an early, short-term bearish trend line connecting the week’s key swing highs, as shown in the chart below, and although it is not something worth getting too excited about yet, a sustained break above that trend line will make the outlook more bullish. Alternatively, if it holds for the rest of the week, a pull back to the $5100.00 area will become more likely to happen.

BTCUSD

Regarding the USD, there will be a release of Unemployment Claims data at 1:30pm 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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