Yesterday’s signals were not triggered, as there was no bearish price action when the price reached $6,900.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken between 8am London time and 5pm Tokyo time, during 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 $6,886 or $7,250.
· 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
· Long entry after a strongly bullish price action reversal on the H1 time frame following the next touch of $6,793 but only enter above $6,900.
· 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
Yesterday I had no directional bias and saw this pair as likely to be difficult to trade successfully. I think this was a good analysis, as the price has moved up and down but still come back to using these two narrowly separated key price levels, which are shown as close to the current candlestick in the price chart below. It’s a very tricky situation for traders trying to trade Bitcoin, and it hasn’t changed so it is probably wise to remain to one side. The price is trying to rise, but there is a long-term bullish trend with a lot of sellers which makes it prone to sudden downwards movements. I simply would not trade Bitcoin for the time being, but I give the technical levels above which should be best to use for anyone determined to try.
There is nothing due today regarding the USD.