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BTC/USD Forex Signal - 5 December 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.

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s BTC/USD Signals

Risk 1.00% per trade.

Trades must be taken between 8am London time and 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 $11400.00, $10680.67, $10074.33, or $8976.34.

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

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

  • Remove 50% of the position as profit when the trade is $200 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 wrote yesterday that there is no reason not to be very bullish over both the medium and long-term. I maintained, and still maintain, a bullish bias and am optimistic we will see still higher prices soon. However, it is looking increasingly likely that we will see a short-term downward movement to at least $11,000, as the steep price rise is starting to look a little stretched. We also have a possible failure formation just under the all-time high at $11,800 which has still now been exceeded. If the price breaks above that with momentum, we can expect $12,500 to be reached. If the price breaks below $11,400 and the nearby steep trend line, we can expect a further fall to below $11,000.

I am bullish and it’s a bull market in Bitcoin.

BTCUSD

Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm 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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