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BTC/USD Forex Signal - 20 November 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 none of the key levels were ever reached

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered between 8am London time and 5pm New York time, today only.

Long Trades

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $7346.96 or $6951.34.

  • Place the stop loss 1 pip below the local swing low.

  • Move the stop loss to break even once the trade is $200 in profit by price.

  • Take off 50% of the position as profit when the trade is $200 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

Bitcoin made a new all-time high price a little above $8000.00 during yesterday’s New York session. It has risen by more than 50% in value in just one week! The upwards movement has printed new, higher support levels and invalidated all important potential resistance levels. Although the strength of the rise has slowed over recent hours as the impact of Bitcoin clearing $8000.00 is absorbed, there is no reason to be anything other than very bullish, even though the price might now require a deeper retracement before advancing again to make new higher highs. The only obstacle to watch out for above would be the extremely psychologically significant price of $10,000.

I have a very bullish bias. The breakout of Bitcoin over the past few months from about $2700 to $8000 has provided traders with a series of great long trade opportunities. There may well be a crash one day, but until that happens it pays to be on the long side at the bullish bounces.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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