Yesterday’s signals were not triggered, as none of the key levels were reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken until 5pm Tokyo time Wednesday.
Long Trade
- Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3,470.
- Put the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is $50 in profit by price.
- Remove 50% of the position as profit when the trade is $50 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 $3,580 or $3,732.
- Put the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is $50 in profit by price.
- Remove 50% of the position as profit when the trade is $50 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 the picture had become more bullish, and the three former resistance levels have now probably become support. The price was within a relatively wide area without any key levels, so short-term direction was very hard to predict.
The price has continued to gently sell off and seems to have printed a new lower resistance level at $3,580. This is likely to be today’s pivotal level and it would make sense to be bearish if the price keeps rejecting it from below.
Concerning the USD, the Chair of the Federal Reserve will be making a minor speech at 5:45pm London time.