BTC/USD Forex Signal – Wednesday, Oct. 17

Yesterday’s signals were not triggered as none of the key levels were ever reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm Tokyo time, over the next 24-hour period only.

Long Trades

Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,353, $6,263, or $6,171.

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 yesterday that the price here looked likely to consolidate after such a massive price spike which essentially went nowhere the day before. However, due to the slightly bullish action plus the fact that the support at $6,353 held, I took a slightly bullish bias here above $6,353. This was a pretty good call as the price has essentially just gone sideways. It is hard to see any change to the technical picture, the best that can be said is that the longer the price remains above $6,353, the more likely it is to rise eventually, but it looks like it could easily go sideways for a while yet, so I have no interest in this pair today.