Yesterday’s signals produced a long trade following the bullish pin candlestick on the hourly chart which rejected the support level identified at $8,917 during the Asian session. At the time of writing, the trade has just moved back into profit.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time, over 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 the bearish trend line shown in the price chart below which is currently situation at about $9,374.
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 $8,679.
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
I wrote yesterday that I thought that the price would continue to grind down at least a little further before it might get the impetus to rise again and challenge that trend line. I was correct, as the price did fall, before turning bullishly at the support level which I identified at $8,679. A long trade entry has now been triggered there. The price may rise to the bearish trend line again but watch out for the former inflection point at $9,100 which might be resistant. I expect that the price will go higher today.
Regarding the USD, there will be a release of ISM Manufacturing PMI data at 3pm London time.