Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time today, over the next 24-hour period only.
Long Trade
Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,620.
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.
Short Trades
Go short after a bullish price action reversal on the H1 time frame following the next touch of $7,167 or $7,418.
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.
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 had a bearish bias below $7,418. This worked out well, as the price never exceeded that level, and has continued to fall to make new low prices. The former support at $7,167 has broken down and now looks to have been flipped to become new lower resistance. Prices have not been at these levels for some weeks, so the push down driven by the descending trend line is in blue sky. There is no reason to be anything other than bearish below $7,418 even if price breaks above the trend line again. There are no key support levels until $6,620 so the price has a long way to fall without encountering any obstacles.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time.