Last Thursday’s signals were not triggered, as there was no bullish price action at $10,164.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm Tokyo time, over the next 24-hour period.
Long Trade
Go long after a bullish price action reversal on the H1 time frame following the next touch of $9,000.
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.
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.
Short Trade
Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,886.
Place the stop loss 1 pip above the local swing high.
Move 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
Last Thursday I thought it was likely that a ranging situation would prevail, although the picture had become decidedly less bullish. However, the market actually became quite bearish and continued to move down within a bearish wedge pattern. Despite that, there is now a triple bottom forming at $9,374 which may provide a supportive floor. If that level breaks down, there is a long-term supportive trend line currently confluent with a round number at $9,000 which may provide alternate support. There is no support a long way below $9,000 so if it breaks down the price could fall much further. Alternatively, a break up above $9,886 could see a reasonably strong bullish movement develop quickly.
There is nothing important due today concerning the USD.