Yesterday’s signals were not triggered, as there was no bullish price action when the price first reached $10,694.
Today’s BTC/USD Signals
Risk 1.00% per trade.
Trades can be entered at any time.
Long Trade
Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,976.
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 $13,217 or $14,058.
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 wrote yesterday that Bitcoin bulls are surviving, but only barely, clinging onto support near the psychologically important $10,000 levels. The situation now looks more bearish: the support level has been invalidated, and the dominant short and medium-term patterns of lower lows and lower highs continues. Looking at the price chart below we see a series (or at least two, anyway) of steepening bearish trend lines. So, today I have a slightly bearish bias.
The problem is a lack of obvious levels for taking a short trade. If forced to identify them, I think the round numbers at $11,000 and especially $12,000 could be interesting areas.
There is nothing important due today concerning the USD.