Yesterday’s signals were not triggered, as none of the key levels were ever reached.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken before 5pm Tokyo time Wednesday.
Long Trade
- Go long at a bullish price action reversal on the H1 time frame following the next touch of $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 $5,235, $5,355, or $5,513.
- 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 there was no long-term trend, but the longer the price stayed below $5,235 the more bearish I would be. We just had a day where the price hardly moved, just consolidated quietly in the same price area slightly below that resistance level, so I am a little more bearish today. Just like yesterday, I would take a bearish bias if there is a solid bearish rejection of the resistance at $5,235 later today.
Regarding the USD, there will be there will be a release of CB Consumer Confidence data at 3pm London time.