Last Thursday’s signals may have produced a losing trade from the bearish rejection of the resistance level at $11,539 but the entry candlestick was very large and so would have been best ignored.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades may only be entered prior to 5 pm Tokyo time Tuesday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $11,407, $11,185, or $11,023.
- 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.
- 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 run.
Short Trade Ideas
- Go short after a bearish price action reversal on the H1 time frame following the next touch of $11,553, $11,804, $11,959, or $12,105.
- 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.
- 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 the technical picture now was one of consolidation below the new pivotal resistance level at $11,539.
I was hoping to take a bullish bias following a second consecutive hourly close above $11,539 if it set up.
This was a good call as the price was unable to make a sustained break above that level which did turn out to be pivotal.
I have had to adjust that resistance level upwards slightly, but the dominant technical picture is unchanged with an ongoing bullish consolidation beneath that area.
I will take a bullish bias if we get two consecutive hourly closes above $11,553 to the next resistance level, as the price chart suggests a bullish breakout beyond that price could develop some bullish momentum.
Concerning the USD, the Chair of the Federal Reserve will be giving a minor speech at 1 pm London time.