Last Thursday’s signals were not triggered, as the bullish price action took place a little below the support level at $6,534.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken until 5pm Tokyo time, during the next 24-hour period.

Long Trades

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,493 or $6,353.
  • Place the stop loss 1 pip below the local swing low.
  • Adjust the stop loss to break even once the trade is $200 in profit by price.
  • 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 ride.

    • Short Trades

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,679 or $6,811.
  • Place the stop loss 1 pip above the local swing high.
  • Adjust the stop loss to break even once the trade is $200 in profit by price.
  • 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 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 Bitcoin was looking very indecisive and hard to predict, as it arrived near the point of a long-term consolidating triangle formation. I thought the best that could be said was that the situation would become bullish above $6,679 and bearish below $6,353. As both levels have held, my outlook has not changed dramatically, but I do note that we have had a quiet bullish break out of the consolidating triangle, so I now take a weakly bullish bias, seeing the best potential trade set-up as a long trade following a healthy bullish bounce following a rejection of the support level at $6,493. A sustained break above $6,679 would be a very bullish sign.

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