By: DailyForex
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 Trade
- Go short after a bearish price action reversal on the H1 time frame following the next touch of $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 bullish price action reversal on the H1 time frame following the next touch of $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
Last Thursday I took a bearish bias and pointed towards an opportunity to go short from a resistance level which ultimately held convincingly, so it was a good forecast over the short term. The situation has subsequently become more bullish, with the resistant area becoming flipped to support at $6,900 and the break of the bearish trend line (shown in the price chart below). I would now take a bullish bias above $6,900 until $7,250 is reached. A break above that level would be a sign of increasing bullishness as it is a key psychological level. Profit targets on longs are probably best being relatively conservative as there is a long-term bearish trend.
There is nothing due regarding the USD.