BTC/USD Forex Signal

By December 27, 2019 Bitcoin Business
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Bitcoin: Bearish consolidation below $7,260

Last Tuesday’s signals produced a losing long trade from the pin bar on the hourly chart which rejected the support level identified at $7,221.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be taken before 5pm Tokyo time Friday.

Long Trade Idea

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,786.

  • Put the stop loss 1 pip 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

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $7,260 or $7,456 or $7,698.

  • Put the stop loss 1 pip 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 last Tuesday that it was very likely that how the price reacted at $7,221 would determine its course for the rest of the day. So, I was seeking to take a weakly bearish bias if we had gotten a couple of hours of consecutive closing prices later below that level. This was enough to keep out of trouble as the price did not do this to get established below $7,221.

Although the price has not moved much, there are some interesting new technical signs. Firstly, the old level at $7,221 has been invalidated. The key pivotal point now seems to be resistance at $7,260. Yet even if the price can get established above that level and rise as far as $7,456 it would seem to only be completing the final hump of a bearish head and shoulders pattern indicating another downwards move would be imminent.

I remain ready to take a short trade, in line with the long-term bearish trend, from a rejection of $7,260 or $7,456 with $7,456 looking like a very ripe opportunity.

BTCUSD

There is nothing of high importance due today concerning the USD.

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

Last Tuesday’s signals produced a losing long trade from the pin bar on the hourly chart which rejected the support level identified at […]

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