BTC/USD Forex Signal - 21 March 2018

Yesterday’s signals were not triggered, as there was no bearish price action at $8,800.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before 5pm Tokyo time, over the next 24-hour period only.

Short Trades

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $9,420 or $10,131.

  • 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.

Long Trades

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,800 or $8,092.

  • 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.

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 had no directional bias yesterday, as I did not see much to choose between the bullish and the bearish cases. The bulls are a little stronger now, as the price was able to advance and break up above the former resistance level at $8,800 which has now probably flipped to become new support. The short-term trend is bullish, so I would be happier taking a long trade from a bullish bounce at $8,800 than a short trade from a bearish bounce at $9,420.BTCUSD

Regarding the USD, there will be a release of Crude Oil Inventories at 2:30pm London time, followed by the FOMC Statement, Economic Projections, and Federal Funds Rate at 6pm, followed later by the usual press conference.

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.