BTC/USD Crypto Signal
Last Thursday’s signals could have been triggered by the large doji candlestick producing a profitable bullish trade, but the action would probable not have looked attractive to most traders at the time.
Today’s BTC/USD Signals
Risk 0.75% per trade.
Trades must be taken prior to 5pm Tokyo time Tuesday.
Long Trades
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Go long at a bullish price action reversal on the H1 time frame following the next touch of $3,936, $3,876 or $3,804.
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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 $50 in profit by price.
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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.
Short Trade
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Go short after a bearish price action reversal on the H1 time frame following the next touch of $4,374.
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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 $50 in profit by price.
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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.
I wrote last Thursday that the price needed a breakout on high volatility and when it eventually comes it should be worth riding it. This was a good call as after an initial huge doji candlestick, the price broke upwards to make a high above $4,000, printing higher support levels along the way.
The picture now is generally more bullish, with no resistance to halt a further advance until $4,374. However, the price action of recent hours has suggested a topping out at about $4,000. It looks likely that today’s pivotal level will be $3,936 – a strong bounce here and I would take a bullish bias, but if the price breaks below I would avoid any long trades unless $3,876 survives a test from above later on.
Regarding the USD, there is nothing of high importance due today.
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.
