Yesterday’s signals produced a losing trade from the bearish pin candlestick which rejected the resistance level at $3,450.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm Tokyo time today.
Long Trade
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3,274.
- 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 run.
Short Trade
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $3,470.
- 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 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 a bullish break above $3,450 over the next few hours would probably be a significantly bullish sign due to the bullish “over and under” price action formation, so I would take a bullish bias if the price traded above that level today for a couple of hours. This was a bad call, although the price barely did trade above the level before falling back.
The price is now back below the resistance which I’ve readjusted upwards to $3,470. The price looks likely to fall further following this failure to get established above the resistance, but there may well be support at about $3,360.
There is nothing of high importance due today regarding the USD.