Yesterday’s signals were not triggered, as there was no bearish price action when either of the resistance levels were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm Tokyo time today, during the next 24-hour period.
Long Trades
* Long entry after a bullish price action reversal on the H1 time frame following the next touch of $7,532 or $7,286.
* 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.
Short Trades
* Short entry after a bearish price action reversal on the H1 time frame following the next touch of $7,675 or $7,825.
* 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.
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 had no directional bias. This seems to have been the correct call as the picture is becoming even more evenly split between bulls and bears, with the action getting marginally more bearish. I again have no bias today. The long-term downwards movement looks like it is flattening out, and there is an even balance on the lower time frames. I see both support and resistance levels as equally likely to produce tradable reversals, but I would keep profit targets relatively conservative due to the overall ranging environment. Again, it is interesting how Bitcoin is starting to behave just like a typical Forex currency pair!
Regarding the USD, there will be a release of ISM Non-Manufacturing PMI data at 3pm London time.