BTC/USD: Direction flattening out
Last Thursday’s signals were not triggered as none of the key levels were reached that day.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken prior to 5pm Tokyo time Tuesday.
Long Trade Idea
Go long after a bullish price action reversal on the H1 time frame following the next touch of $5,683.
Place the stop loss $50 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 Idea
Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,418.
Place the stop loss $50 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 a neutral approach should continue here today with no directional bias – so I would take either a long trade at a bounce from $6,418 or a short trade from a bearish reversal at $7,228. I was right about the general flatness of the price, although neither of these levels were hit. The price is still swinging in quite wide swings, but ultimately without any direction. We just have a wide consolidation and few key support or resistance levels, so the price still has room to move around.
I again take no directional bias and would be prepared to take a trade in either direction from a reversal at either key support or resistance levels nearby. Market generally are consolidating, and strong directional movement is more likely to happen tomorrow than today.
There is nothing of high importance scheduled for today concerning the USD.