Yesterday’s signals were not triggered, as the bearish price action took place slightly above $3,580.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time Thursday.
Long Trade
Go long at a bullish price action reversal on the H1 time frame following the next touch of $3,557.
Place the stop loss 1 pip below the local swing low.
Adjust the stop loss to break even once the trade is $50 in profit by price.
Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.
Short Trade
Go short after a bearish price action reversal on the H1 time frame following the next touch of $3,732.
Place the stop loss 1 pip above the local swing high.
Adjust the stop loss to break even once the trade is $50 in profit by price.
Take off 50% of the position as profit when the trade is $50 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 the new lower resistance level at $3,580 was likely to be today’s pivotal level and it would make sense to be bearish if the price kept rejecting it from below. This wasn’t a great call as ultimately the price movement said this level meant nothing.
The price continues to consolidate and is respecting the flipped level at $3,557 enough to identify this as new support. However, there is a descending trend line close by which has had three taps already, so the bulls and bears seem to be evenly balanced. The best I can say is that I would be weakly bullish above the trend line at about $3,640 and weakly bearish below the support at $3,557.
Concerning the USD, there will be a release of CPI data at 1:30pm London time.