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 Friday.
Long Trade
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $3,557.
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 Trade
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $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 price continues to consolidate and was respecting the flipped level at $3,557 enough to identify this as new support. However, there was also a descending trend line close by which had had three taps already, so the bulls and bears seemed to be evenly balanced. I was looking for a breakout beyond those boundaries to take a bias in the direction of the breakout. This was a good call insofar as the price has remained contained so no trade. I would take the same approach today, so no change, but I would like to see any breakout making some higher volatility.
Concerning the USD, there will be releases of Retail Sales and PPI data at 1:30pm London time.