Yesterday’s signals produced a long trade entry during the Asian session following the bullish inside candlestick break on the hourly chart following the rejection of the support level at $4,836, but the action has been flat since.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be taken between 8am New York time Thursday and 5pm Tokyo time Friday.
Long Trades
Long entry at a bullish price action reversal on the H1 time frame following the next touch of $4,836 or $4,374.
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 Trade
Short entry after a bearish price action reversal on the H1 time frame following the next touch of $5,345.
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 yesterday that the price action was bullish, so it probably made sense to look for long trades above $4,836 but of course it may take some more time before the bulls could really exceed the $5,000 area which was capped at $5,187.
This was a good call as the price continued to rise but managed to also exceed what I saw as the likely cap at $5,187 which is a bullish sign. The level at $4,836 has acted as support which is another bullish sign. There is no reason not to be bullish but to be safe its best to wait for the price to start trending up over the short term – it has been flat over recent hours. I would take a bullish bias if there were a strong bullish bounce following a bearish retracement to the support at $4,836. If Bitcoin can go on and clearly break the psychologically important $5,000 level, then we could be seeing the start of another major upwards movement in price after many boring months of little movement.
There is nothing of high importance due today concerning the USD.