Yesterday’s signals were not triggered, as there was no bullish price action at $7,813 or $7,632.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am London time and 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 $7,266 or $6,805.
- 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 $7,632 or $7,813.
- 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 yesterday that the support above $8,000 had been invalidated and the picture was now looking more bearish. I took a bearish bias today as long as the price remains between $8,200 and $7,813. This was a good call as the price fell right through the support levels and has continued to fall. It still looks weak right now, as if is likely to keep moving down in the coming hours. However, the psychological level of $7,500 has been reached, which is quite likely to slow the move down. I am very cautiously bearish below $7,632. There is no long-term trend to exploit here.
Regarding the USD, there will be a release of the ADP Non-Farm Employment Change data at 1:15pm London time, followed by ISM Manufacturing PMI at 3pm, Crude Oil Inventories at 3:30pm, and the FOMC Statement and Federal Funds Rate at 7pm.