Last Wednesday’s signals would have produced a losing short trade from the bearish reversal at $8,250.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm Tokyo time, during the next 24-hour period.
Short Trades
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $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 Trades
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,679 or $8,427.
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 wrote last Wednesday that I still had a slightly bullish bias as long as the support at $7,758 continues to hold. This turned out to be a good call as the price has risen strongly, breaking up past resistance levels and establishing new support. Bitcoin is looking considerably stronger now and is now making a new 1-month high price, which is probably a good sign of some bullish momentum, although we are far from the kind of bullish momentum that we saw in 2017. I keep a bullish bias for now, although we are seeing the round number at $9,000 act as a cap on the price over the last two days.
There is nothing due today concerning the USD.