Yesterday’s signals produced an excellent profitable trade, following the bullish break from the doji candlestick at the support level of $4218.50 which held to the pip. It is worth trying to let this trade run in the current bullish environment.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades can be taken until 5pm New York time today only.
Long Trades
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $4218.50 or $4115.86.
- 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.
Short Trade 1
- Go short after a strongly bearish price action reversal on the H1 time frame following the next touch of $4779.06.
- Put 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.
- 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
The touched the support level at $4218.50 and has begun rising again, although not very strongly. My bullish bias has proved to be correct and there is no reason not to stay bullish, in fact no reason not to be even more bullish at least until a day or two goes by and we see where the price goes. Technically, the price is in a clear medium-term bullish channel. There are two bullish inner trend lines confluent with the nearest support, but a break below there would not mean much until the lower level and trend line broke down, which would be a very bearish sign. I keep a firm bullish bias for now, although there is some evidence of minor resistance at $4350.00.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change Forecast at 1:15pm London time, followed by ISM Non-Manufacturing PMI at 3pm, Crude Oil Inventories half an hour later, and then finally Janet Yellen opening a conference at 8:15pm.