Last Thursday’s signals were not triggered, as the price cut quickly through every key support and resistance level which was reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time Tuesday.
Long Trade
- Long entry at a bullish price action reversal on the H1 time frame following the next touch of $4,824.
- Put the stop loss 1 pip below the local swing low.
- Move the stop loss to break even once the trade is $50 in profit by price.
- Remove 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 Trades
- Short entry after a bearish price action reversal on the H1 time frame following the next touch of $5,235, $5,355, or $5,513.
- Put the stop loss 1 pip above the local swing high.
- Move the stop loss to break even once the trade is $50 in profit by price.
- Remove 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 last Thursday that I thought that we were likely to see a pause in the medium-term bullish trend which we had seen in Bitcoin for some time now. I said that this meant it may be wise to stand aside from trading Bitcoin for a while. This was a really good call as the price made a sharp downwards movement and has been consolidating below new resistance at $5,235, which is a bearish sign.
There is no long-term trend, but the longer the price stays below $5,235 the more bearish I will be. A strong reversal from that level might be a good short trade entry, as that level looks likely to be today’s crucial pivotal point.
There is nothing of high importance due today regarding the USD.