Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken until 5pm Tokyo time Thursday.
Long Trades
Go long at a bullish price action reversal on the H1 time frame following the next touch of $3,830 or $3,732.
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 $4,100.
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 as the rise over the past few days had been relatively strong compared to recent flat action, and there was no resistance until $4,100, so I would take a bullish bias if the price could trade above $3,950 for a couple of hours later today. This was a good call as although the price did edge above that level, it was not able to get established there, so it was enough to stay out of trouble. The picture still looks bullish, but a little less so. I will remain cautiously bullish if the price holds above $3,830 but it looks like we are going to need a deeper pullback, perhaps to that level, before the price may resume its rise.
Concerning the USD, there will be a release of FOMC Meeting Minutes at 7pm London time.