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BTC/USD Forex Signal - 27 August 2018

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Last Thursday’s signals were not triggered, as none of the key levels were ever reached that day.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken before5pm Tokyo time, 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 $6,569 or $6,170.
  • Place 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 Trades

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,805 or $7,266.
  • Place 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

I wrote last Thursday that Bitcoin was back to a dull, ranging situation, with no real long-term trend or trend on any time frame. While there have still not been any very strong movements, there is definitely a move towards a more bullish picture and a slow, medium-term bullish trend. For this reason, I take a weakly bullish bias today above the support level at $6,569. I would be strongly bullish if the price can get established above the resistance level at $6,805 which looks like being the key pivotal level for today. Above that resistance, the price has room to rise significantly higher.

BTC/USD Signal

There is nothing important due today regarding the USD.

Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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