Last Thursday’s signals were not triggered, as there was insufficiently bullish price action at any of the resistance levels which were hit.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may only be entered before 5pm Tokyo time Tuesday.
Long Trades
Go long at a bullish price action reversal on the H1 time frame following the next touch of $7,582, $7,186 or $6,811.
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 $8,436, $8,593 or $8,893.
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 last Thursday that it made sense to remain bullish, but a period of consolidation or a deeper retracement were becoming more likely scenarios. I was ready to take a bullish bias following a retracement to and bullish bounce at the nearby support level of $7,582.
This was broadly a good call as although the price has continued to hold up, it has consolidated and been unable to break the recent multi-month high price. However, when the price retraced to $7,582 there was no bullish bounce there, it happened much lower, but my approach was enough to keep out of trouble.
I’m still bullish but less so – I would need to see the price trade above $8,436 later today in order to take a bullish bias.
Regarding the USD, there is nothing of high importance due today.