Yesterday’s signals were not triggered, as there was no bullish price action at $6,493.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm Tokyo time, within the next 24-hour period.
Long Trade
Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,353.
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 $6,493 or $6,679.
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 was still weakly bullish and still hoping for a bounce at $6,493. A bullish bounce a little above that at the lower bullish trend line of the price channel could also have been a good long trade entry.
The action has turned out differently, although it is not a big surprise – we see a bearish breakdown below the trend lines and the former support level at $6,493, which now seems to have flipped to become new resistance. This means that it might be possible to sell off bearish rejections of that area, but a note of caution is worthwhile as the action is generally congested and choppy.
The longer that the price struggles to rise above $6,493 the more likely it will be to make a significant downwards movement.
Regarding the USD, there will be a release of PPI data at 1:30pm London time.