BTC/USD Forex Signal – 02 October 2018

By Adam Lemon

Last Thursday’s signals were not triggered, as there was no bearish price action at $6,569 or $6,643.

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

— Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,446 or $6,353 or $6,171.

— Put the stop loss 1 pip below the local swing low.

— Move the stop loss to break even once the trade is $200 in profit by price.

— Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.

Short Trades

— Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,643 or $6,811.

— Put the stop loss 1 pip above the local swing high.

— Move the stop loss to break even once the trade is $200 in profit by price.

— Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.

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 I saw the most exciting, interesting places for strong, medium-term reversals as both $6,171 and $6,643. The price actually broke strongly above the resistance at $6,643 but has returned to settle in its area where it tends to be more settled. The long-term technical picture shows a consolidating triangle and a continuing absence of any real trend. This suggests that the best trades will be any strong reversals off key levels in either direction. I see a move down as slightly more likely to happen as there is a confluence of a long-term bearish trend line and horizontal resistance at $6,643 so a short from a bearish reversal here looks like the most interesting possible trade which might set up today.

Regarding the USD, the Chair of the Federal Reserve will be giving a minor speech at 3pm London time.

This article provided by NewsEdge.