BTC/USD Forex Signal – 05 July 2018

Yesterday’s signals produced a temporarily profitable long trade yesterday from the bullish price action rejecting the support level identified at $6,538. The trade is just about in profit but is moving very slowly so is becoming increasingly risky.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trade

— Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,546.

— 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.

Short Trades

— Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,805.

— 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.

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 action still looked relatively bullish, but I had no directional bias. The price did move up, with the recent key pivotal level continuing to act as support and resistance around $6,500. I also said yesterday that the price needs more time and more bullish action before it can become possible to be more confidently bullish. I think this is still true as moves seem to take a long time to happen, or happen in sudden spikes, making this somewhat difficult to trade. As there has been mild bullishness for a while, it feels as if a break below $6,500 could produce a sharper move downwards as long trade stops would be uncovered.

Regarding the USD, there will be a release of the ADP Non-Farm Employment Change at 1:15pm London time, followed by the ISM Non-Manufacturing PMI at 3pm. There will be a release of Crude Oil Inventories data at 4pm, and finally the FOMC Meeting Minutes at 7pm.

This article provided by NewsEdge.