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BTC/USD Forex Signal: Narrowing Triangle Chart Pattern

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

Traders might look to go short there at a bearish reversal, or long if there are two consecutive hourly closes above it.

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My previous BTC/USD signal on 28th September was not triggered as there was no bearish price action when the resistance levels which I had identified were first reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm Tokyo time Wednesday.

Long Trade Idea

  • Go long after a bullish price action reversal on the H1 timeframe following the next touch of $26,839.
  • Place the stop loss $100 below the local swing low.
  • Adjust the stop loss to break even once the trade is $100 in profit by price.
  • Remove 50% of the position as profit when the trade is $100 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 timeframe following the next touch of $27,750, $28,206, or $28,652.
  • Place the stop loss $100 above the local swing high.
  • Adjust the stop loss to break even once the trade is $100 in profit by price.
  • Remove 50% of the position as profit when the trade is $100 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 in my previous BTC/USD analysis on 28th September that if anything, I suspected an upwards price movement beyond the current range is suggested as more likely than a downwards one from the recent price action.

This was a good call.

The technical picture now has changed a bit – the price has risen over the past couple of weeks, but over recent days has traded within a narrowing, consolidating triangle pattern.

There is a resistance level within this triangle at $27,750 which looks quite likely to hold if reached, so it will probably be today’s pivotal point.

Traders might look to go short there at a bearish reversal, or long if there are two consecutive hourly closes above it.

BTC/USD

There is nothing of high importance due today concerning the US Dollar.

Ready to trade our daily Bitcoin signals? Here’s our list of the best cryptocurrency brokers worth checking out.

Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

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