Yesterday’s signals gave a long trade from the bullish doji candlestick which rejected the support level identified at $14,222 – however it would already have been stopped out at break even.
Today’s BTC/USD Signals
Risk 1.00% per trade.
Trades must be taken before 5pm Tokyo time, during the next 24 hours only.
Long Trade
· Go long after a bullish price action reversal on the H1 time frame following the next touch of $14,222.
· 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.
Short Trades
· Go short after a bearish price action reversal on the H1 time frame following the next touch of $15,548 or $17,900.
· Put the stop loss 1 pip above the local swing high.
· 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 was correct yesterday in seeing the level at $14,222 as extremely attractive for a long trade. Unfortunately, the bullish move did not take off strongly and lost momentum quite quickly. The technical picture is unchanged, with the price in a wide and gently bullish channel. The consolidative mood is still there, with the major cryptocurrency action now in Ethereum, which is making new all-time high prices. On Bitcoin, I have a slightly bullish bias.
There is nothing important due today regarding the USD.