Yesterday’s signals were not triggered, as there was insufficiently bearish price action at $6,900.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may be entered before 5pm Tokyo time, over the next 24-hour period only.
Short Trades
· Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,900 or $7,250.
· 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 Trade
· Go long after a strongly bullish price action reversal on the H1 time frame following the next touch of $6,796 but only enter above $6,900.
· 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
Yesterday I took a bearish bias, but the price managed to break above the resistance at $6,976 which now seems to have become support. However, the resistance at $6,900 has held, which makes for a confusing and dangerous picture within a relatively narrow price area. There is also clearly bullish price action below. It will probably be best not to take any long trade entries unless the price against bounces off the support and quickly breaks above the resistance at $6,900. I have no directional bias and see this pair as likely to be difficult to trade successfully today.
Regarding the USD, there will be a release of CPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm and the FOMC Meeting Minutes at 7pm.