Support holding.
Yesterday’s signals were not triggered as there was insufficiently bearish price action at $8,829.
Today’s BTC/USD Signals
Risk 0.50% per trade.
Trades must be taken prior to 5pm Tokyo time Thursday.
Long Trade Ideas
- Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,162, $8,004, or $7,200.
- Put the stop loss $50 below the local swing low.
- Adjust the stop loss to break even once the trade is $50 in profit by price.
- 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 Ideas
- Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,125 or $9,584.
- Put the stop loss $50 above the local swing high.
- Adjust the stop loss to break even once the trade is $50 in profit by price.
- 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.
BTC/USD Analysis
I wrote yesterday that I was prepared to take either a long trade from a bounce at $8,162 or a short trade from another bearish reversal at $9,125. This was a good call, insofar as it was at least enough to keep out of trouble, as I ignored the resistance level I had in between those two numbers, and that level was ineffective so best ignored. It is now invalidated.
The technical picture shows a clear ranging consolidation between $9,000 and the support at $8,162. I am again prepared equally to take either a long trade from a bullish bounce at $8,162 or $8,004, or a short trade from a bearish reversal at $9, 125. A breakout from this range could be another option, as a breakout in these circumstances will suggest more directional movement further in the direction of the breakout.
Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 2pm London time.