Yesterday’s signals produced a long trade from a bullish bounce at $8,800 which would still be open.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Short Trades

• Go short after a bearish price action reversal on the H1 time frame following the next touch of $9,420 or $10,131.
• Put 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.

Long Trades

• Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,800 or $8,092.
• Put 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.

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 would be happier taking a long trade from a bullish bounce at $8,800 than a short trade from a bearish bounce at $9,420. The only thing that has happened over the past 24 hours, and the action here has been minor compared to the Forex market, is that this support at $8,800 was tested and held. The price is currently moving up, but the action looks a little weak, and the price might well retest $8,800. It seems as if the levels are valuable and will tend to hold the price during such relatively weak price action. I have no directional bias, maybe a very small bullish bias only.

(Click on image to enlarge)

There is nothing due today regarding the USD.