BTC/USD Crypto Signal
Yesterday’s signals were not triggered, as there was no bearish price action at $3,830.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades may be entered prior to 5pm Tokyo time Wednesday.
Long Trades
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Long entry at a bullish price action reversal on the H1 time frame following the next touch of $3,732, $3,646 or $3,552.
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Put the stop loss 1 pip below the local swing low.
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Move the stop loss to break even once the trade is $50 in profit by price.
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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
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Short entry after a bearish price action reversal on the H1 time frame following the next touch of $3,859 or $3,969.
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Put the stop loss 1 pip above the local swing high.
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Move the stop loss to break even once the trade is $50 in profit by price.
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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.
I wrote yesterday that as the price was almost back within its comfort zone, it was likely do little now. The support at $4,732 seemed to be holding, but it was likely that the level at $3,830 had become new resistance, so the price looked like it would not go anywhere. I was partially right as the movement is really just reverting back to its average, even though the resistance at $3,830 was broken and invalidated. I have adjusted the resistance upwards to its true level which seems to be $3,859.
Unfortunately, it still looks impossible to forecast any direction here, so I think this is still best avoided by traders today.
Regarding the USD, there will be a release of CB Consumer Confidence data at 3pm London time as well as testimony before the Senate from the Chair of the Federal Reserve.
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.
