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BTC/USD Forex Signal - 20 March 2018

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 there was insufficiently bearish price action at $8,357.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm Tokyo time, during the next 24-hour period.

Short Trades

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,800 or $9,420.

  • 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.

Long Trade

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,092.

  • 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 had a slightly bearish bias yesterday, as I saw the inability to break above $8,357 as clearly a bearish sign, even though a new support level had been established just above $8,015. Above $8,357 it starts to look much better for bulls. My bias was a little wrong, the price has moved up very slightly, and has invalidated and broken above the former resistance level at $8,357. However apart from that, there very little to the technical picture, with the next resistance level not far away at $8,800, although I adjust the key support level slightly, so it now stands slightly higher at $8,092. I take no directional bias today and I think rejections of either support or resistance are equally likely to provide opportunities.

BTCUSD

There is nothing due today regarding the USD.

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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