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BTC/USD Forex Signal - 23 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 Thursday’s signals were not triggered, as neither of the key support levels given were ever reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trades

  •  Go long after a bullish price action reversal on the H1 time frame following the next entry into the zone between $5754.79 and $5731.18, or the next touch of $5409.57.

  • Put 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.

  • 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

I still had a bullish bias at the end of last week, which proved to be correct as the price went on to rise to make new all-time highs before peaking at $6179.00. The price has sold off somewhat during recent hours, but has been supported by a zone centred upon the key psychological level of $5750.00. A bullish bounce here could be a good opportunity to enter a new long trade. If the zone breaks down and is invalidated, then the next level to watch for a turn-around after a pull-back would be $5409.57. I maintain a bullish bias, and I think it would be very foolish to take a bearish approach with the price having made new all-time high prices over the last few days. However, it is true there is an upper channel trend line connecting the two swing high prices, as shown in the chart below, and it is possible this line could act as resistance upon the exhaustion of a move up into a new all-time high price.

BTCUSD

There is nothing important due today regarding 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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