Yesterday’s signals were not triggered, as although the resistance identified at $6,679 capped the high of the day very accurately, the price action was too fast to be exploited on the hourly chart.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time, during the next 24-hour period only.
Long Trades
Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,493 or $6,353.
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
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,679 or $6,811.
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 as we have had a quiet bullish break out of the consolidating triangle, so I now take a weakly bullish bias, seeing the best potential trade set-up as a long trade following a healthy bullish bounce following a rejection of the support level at $6,493. This was a reasonably good call as the major movement has been upwards, with the bullish channel continuing to hold and the price spiking up yesterday to briefly touch the nearest resistance level at $6,679. The price has been going mostly sideways over the past day, but there is no technical change at all, so I am 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 be a good long trade entry.
There is nothing important due today concerning the USD.