Last Thursday’s signals were not triggered, as there was no bullish price action when the price reached $8,051.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered until 5pm Tokyo time, during the next 24-hour period.
Long Trades
Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,042, $7,813, or $7,632.
Put 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
Go short after a bearish price action reversal on the H1 time frame following the next touch of $8,287 or $8,436.
Put 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
I wrote last Thursday that we were likely to see the support level of $8,051 hold up, so a bullish bounce there was likely to be a good trade. I also said that I still saw a bullish picture, but the rise was likely to continue to slow down and begin a period of consolidation. I was right on this last part, but wrong about $8,051 holding as support. After the price broke down to lower support, it turned around and rose again, but the pace of the rise has now slowed to nothing and we are established within a consolidation between $8,287 and $8,042. How the price reacts at either or both these levels should determine what will happen today. I would take a bearish bias if the price can get established below $8,000 but otherwise I take no directional bias.
There is nothing important due today concerning the USD.