Yesterday’s signals were not triggered, as there was insufficiently bearish price action at the first touch of the resistance level at $3,859.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm Tokyo time Thursday.
Long Trades
Go long at a bullish price action reversal on the H1 time frame following the next touch of $3,646 or $3,552.
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 $3,969.
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 getting bearish here looked dangerous as we had major and probably strong support close below at $3,646. This meant that if the price could get established above $3,750 then I thought that it would be likely to move higher for some distance. This was a good call as after clearing $3,750 it did continue up before being stopped by the resistance I had placed at $3,859.
Today, if the price can trade above $3,859 for a couple of hours and show some bullish momentum there, I would take a cautiously bullish bias. If the price settled above $4,000 that would be a very bullish sign. Today the pivotal level is likely to be $3,859 but a move down from there currently looks unlikely.
There is nothing of high importance due today regarding the USD.