BTC/USD Forex Signal – 14 May 2018

Last Thursday’s signals were not triggered, as there was no bullish price action at $9,238 or $9,003.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken from 8amLondon time to 5pmTokyo time, during 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 $8,334.

— Place 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

— Go short after a bullish price action reversal on the H1 time frame following the next touch of $8,893 or $9,003.

— Place 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 expected Bitcoin to consolidate, so I took no bias. The price actually moved down relatively strongly over the past few days, breaking several support levels and flipping them to become probable resistance, before seeming to find support over the last couple of days at or near the support level of $8,334. The long-term picture is one of a gradual drifting bearish move, but there are also signs of consolidation as the price forms a large triangle.

As the action is generally consolidative and the support at $8,334 looks firm, I take a cautiously bullish bias today. However, if the price will break convincingly below $8,300 that would be a very bearish sign.

There is nothing due today concerning the USD.

This article provided by NewsEdge.