Last Thursday’s signals may have produced a long trade from the bullish inside candlesticks which rejected the support level at $3,936. If still open, this trade is no more than a coin toss, so it may be wise to exit it.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered from 8am New York time Monday until 5pm Tokyo time Tuesday.
Long Trades
Go long at a bullish price action reversal on the H1 time frame following the next touch of $3,936 or $3,876.
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 ride.
Short Trade
Go short after a bearish price action reversal on the H1 time frame following the next touch of $4,008.
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 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 last Thursday that the picture remained bullish following the break above $4,000. However, the price quickly made a sharp drop back below the $4,000 area but was held by the next support level at $3,936. Since then, the price has just ranged between these two nearest levels.
It would be wise not to take a directional bias, unless the price gets established above $4,008 (bullish) or below $3,936 (bearish).
There is nothing of high importance due today regarding the USD.