Yesterday’s signals were not triggered, as there was no bearish price action at $6,178 but the earlier long trade from $5,950 would be nicely in profit if it had been allowed to run.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered between 8am London time and 5pm Tokyo time, over the next 24-hour period.
Long Trades
Go long after a bullish price action reversal on the H1 time frame following the next touch $6,171 or $5,950.
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 $6,671 or $6,805.
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 yesterday that I remained bearish below $6,178 which looked as if it would be the pivotal level for the day. After this area initially held, there was a stronger bullish movement that broke past the resistance later in the New York session. The price has continued to rise, and it seems that $6,171 has been flipped from resistance to become new higher support. However, the advance is slowing at $6,500 which has been an inflective swing high all week. I am unsure as to likely short-term direction here, as although we have some bullish momentum, this entire area between $6,500 and $6,805 looks likely to be difficult to break.
Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time and Crude Oil Inventories at 3:30pm.