Yesterday’s signals were not triggered, as there was no bearish price action when the resistance level at $3,936 was reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered between 8am New York time Wednesday and 5pm Tokyo time Thursday.
Long Trades
Go long at a bullish price action reversal on the H1 time frame following the next touch of $3,936, $3,921, 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 yesterday that a look at the daily chart showed a slightly bearish picture, so short trades from rejections of resistance levels were likely to be the best bet – I was ready to take a bearish bias if $3,876 broke down convincingly or if the price retraced to $3,936 and strongly rejected that level.
In fact, the price turned around with the support at $3,876 continuing to hold, and recent hours have seen a relatively strong upwards movement which has probably flipped the former resistance levels at $3,936 and below to become new higher support. There are initial signs that the price may be topping out near $4,000 where is there is key resistance close by. If the price can close above $4,008 for a couple of hours, that would be a bullish sign.
There is nothing of high importance due today concerning the USD.