By: DailyForex
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time today, during 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 $6,340.
- 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 Trade
- Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,696.
- 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
Yesterday I wrote that I would be bearish below $6,340 and bullish above $6,696 today. This worked out to be correct enough as the price basically remained within this range. I had thought the price was flattening out after a long-term downwards move and that seems to have been strengthened by the additional day of ranging. There is little more to say except that the bias within that range now looks bullish, so a bullish breakout looks more likely than a bearish breakdown. Beyond that, I have no directional bias today.
Regarding the USD, there will be a release of Building Permits data at 1:30pm London time.