Yesterday’s signals were not triggered as there was insufficiently bearish price action at $6,308 by candlesticks, although the level held very well and capped the high of the day very effectively.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time today, 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 $6,171.
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 $6,308 or $6,388.
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 I would be bearish if $6,308 was rejected again, and it was. This was a good call as it capped the high of the day, and the price fell from there.
The picture remains bearish with stronger downwards thrusts, and so the odds are slightly in favour of a continued descent down to the next support level at $6,171. I would take a bearish bias today below yesterday’s low price.
Regarding the USD, there will be a release of CPI data at 1:30pm London time, and the Chair of the Federal Reserve will be giving a minor speech at 11pm.