Yesterday’s signals produced a short trade following the bearish pin candlestick which rejected the resistance level at $6,805.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm Tokyo time today, over the next 24-hour period only.
Long Trades
Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,563 or $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 $6,805.
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 maintained my lack of a directional bias, noting that there will probably be better opportunities in more traditional fiat Forex currency pairs today. There is no change to this picture here, with the price remaining within the defined range as the resistance level holds. A bullish breakout above $6,805 could be significant if it happens, as we have had a long term downwards move, a flattening out, and now a strong rise could suggest the beginning of an impulsive upwards wave which could be worth riding. Beyond that, the price now looks range-bound although the repeated rejections of the resistance suggest we are more likely to see a move down today than a move up. A fall to $6,563 and a bullish bounce there – this is probably the best opportunity that might set up soon within the current price range.
There is nothing important due today concerning the USD.