BTC/USD Forex Signal – 08 August 2018

By DailyForex

Yesterday’s signals were not triggered, as there has not been sufficiently bullish price action at either of the support levels which were reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered between 8am London time and 5pm Tokyo time, during the next 24-hour period.

Long Trade

— Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,280, or $6,178.

— Place 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 $6,671 or $6,805.

— Place 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 took no directional bias yesterday. This turned out to be a relatively good call, or at least not being as bullish as I was tempted to be by the short-term bullish momentum was a good call. The price has fallen strongly over the past 24 hours, with the key levels flipping easily from support to resistance and the price respecting them. The support at $6,445 is showing initial signs of holding, but the price does not seem quite ready to reverse yet. The direction looks uncertain but there is definitely medium-term and long-term momentum showing.

Regarding the USD, there will be a release of Crude Oil Inventories data at 3:30pm London time.

 

This article provided by NewsEdge.