BTC/USD Forex Signal – 06 August 2018

By DailyForex

Last Thursday’s signals were not triggered, as neither of the key levels were reached that day.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trade

— Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,805, $6,671, or $6,445.

— 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 Trade

— Short entry after a bearish price action reversal on the H1 time frame following the next touch of $7,266.

— 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 the level at $7,813 which was now resistance looked very strong and pivotal, so a short trade from a bearish reversal seems to be the most likely good opportunity to watch for today. If the price could get established above that level, it would be a bullish sign and I would take a bullish bias. The price never reached that level, and the price has fallen steadily. We see short and medium-term bearish trends, and if we zoom out, an argument can be made that Bitcoin is still in a long-term downwards trend as well. I take a bearish bias today between $7,150 and $6,805.

There is nothing important due today concerning the USD.

This article provided by NewsEdge.