Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm Tokyo time Friday.
Long Trades
- Go long at a bullish price action reversal on the H1 time frame following the next touch of $5,184 or $4,824.
- 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 Trades
- Go short after a bearish price action reversal on the H1 time frame following the next touch of $5,345, $5,645, or $5,777.
- 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 have been taking a medium-term bullish bias here, as long as the price is able to remain above $5,000 which is an important psychological level.
I am still bullish as although the price has been unable to advance beyond the resistance at $5,345 for very long, support continues to hold and $5,000 continues to hold.
I would be happy to take a bullish bias if the price can trade above $5,345 for a couple of hours consecutively today. If $5,184 breaks down, the price is likely to fall at least as far as $5,000.
Today’s pivotal point will probably be $5,345.
Regarding the USD, there will be a release of Retail Sales data at 1:30pm London time.