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BTC/USD Forex Signal - 7 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 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 $12,800.21 or $11,815.43.

  • 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.

  • 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

I wrote yesterday, upon the price reaching $12,500 that everything is bullish, everything points to still higher prices. This is what happened, with the amazing upwards movement continuing to rocket ahead. After a small stumble, the price broke up past $14,000 and has already reached $14,600. It is quite possible for Bitcoin to reach $15,000 today, which would be a major milestone. There are few assets in history that have exploded upwards like this. There is bound to be an extremely severe correction, at least, but in the short-term the more likely scenario is that the price will continue to advance. It is likely there will be a short-term bearish bump if the price reaches $15,000 however as it’s a key psychological level.

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

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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