Yesterday’s signals produced a long trade from the bullish inside candlestick a few hours ago on the hourly chart which rejected the support level at $8,435.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered prior to 5pm Tokyo time Thursday.
Long Trades
- Long entry at a bullish price action reversal on the H1 time frame following the next touch of $8,436 or $7,830.
- 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 $8,893, $9.003, or $9,238.
- 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 recent new high just under $9,000 presented a much more bullish picture. and that the short-term price action remained quite bullish, as there had only been a shallow bearish retracement.
I thought there was every reason to be bullish here in line with the long-term trend. I was ready to take an immediate bullish bias if the price were to retrace to the nearest support at $8,436 and make a strong upwards bounce there.
We got this bounce a few hours ago and it remains to be seen what will happen, but the price has risen a little. As long as this support at $8,436 holds, it makes sense to be bullish and hope for new higher highs at $9,000 and above.
There is nothing important due today concerning the USD.