BTC/USD Crypto Signal
Last Thursday’s signals were not triggered, as there was no bullish price action when the price reached $3,338.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be entered before 5pm Tokyo time today only.
Long Trades
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Long entry after a bullish price action reversal on the H1 time frame following the next touch of $3,380 or $3.018.
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Place the stop loss 1 pip below the local swing low.
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Adjust the stop loss to break even once the trade is $200 in profit by price.
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Take off 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.
Short Trades
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Go short after a bearish price action reversal on the H1 time frame following the next touch of $3,592 or $3,925.
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Place the stop loss 1 pip above the local swing high.
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Adjust the stop loss to break even once the trade is $200 in profit by price.
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Take off 50% of the position as profit when the trade is $200 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.
I wrote last Thursday that it looked like the area around $3,925 had a confluence of resistance and so was likely to be today’s pivotal level. I remained broadly bearish. My broad bias was correct, but the price never reached $3,925. The price has continued to fall, and the long-term bearish trend line has held and kept the price down. Over the weekend the price made a new 1-year low as it reached very close to $3,200.
The picture still looks bearish as long as the descending trend line holds, and this is now confluent with horizontal resistance at $3,593 which looks like a very attractive level at which to find a short trade entry. There is some support below, but it looks rather weak and unreliable. I would take a bearish bias later if the price tests and reverses at $3,593.
There is nothing important due today concerning the USD.
Author
Adam Lemon
DailyForex.com
Adam is a Forex trader who has worked within financial markets for over 12 years, including 6 years with Merrill Lynch. He is certified in Fund Management and Investment Management by the U.K. Chartered Institute for Securities & Investment.
