BTC/USD Forex Signal – 15 May 2018

Yesterday’s signals were not triggered as the price stopped just short of both of the nearest key levels.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trade

— Long entry after a bullish price action reversal on the H1 time frame following the next touch of $8,334.

— 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

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

— 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 as the action is generally consolidative and the support at $8,334 looked firm, I took a cautiously bullish bias. This worked out well and the price held. In fact, the price generally behaved very technically, respecting key support and resistance as well as the bearish trend line. There has been no change to the technical picture, and there are still higher lows, so I think a bullish breakout beyond the trend line shown in the price chart below is relatively likely. However, I think at the moment it is better to stand aside as the line might hold, with further inconclusive consolidation to follow.

Regarding the USD, there will be a release of Retail Sales data at 1:30pmLondon time.

This article provided by NewsEdge.