BTC/USD Forex Signal – 17 January 2019

By Adam Lemon

Yesterday’s signals were not triggered, as none of the levels were touched.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm Tokyo time today only.

Long Trades

— Go long after a bullish price action reversal on the H1 time frame following the next touch of $3,563 or $3,450.

— 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 ride.

Short Trades

— Go short after a bearish price action reversal on the H1 time frame following the next touch of $3,732 or $3,914.

— 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 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 bulls looked relatively weak, so I had little confidence in an upwards move from here. For bulls, holding the support at $3,563 would be crucial I thought, but a sustained break below that level and the lower triangle trend line would be a more convincing bearish sign.

In the end, we got neither outcome, as the markets remain very quiet. I would take a bullish bias above $3,732 and a bearish bias below $3,563. I cannot see either outcome being more probable than the other, but the price action does look right for a breakout in either direction on higher volatility soon.There is nothing due of high importance due today regarding the USD.

This article provided by NewsEdge.