BTC/USD Forex Signal – 17 May 2018

Yesterday’s signals were not triggered as the bearish price action took place above $8,334.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trade

— Long entry after a bullish price action reversal on the H1 time frame following the next touch of $7,825.

— 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

— Go short after a bullish price action reversal on the H1 time frame following the next touch of $8,460 or $8,593.

— 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 the bears seemed to be in full control now, with no key support levels close by, and new lower resistance levels above. For this reason, I had a bearish bias. This worked out well, with the price turning bearish against after a brief retracement back into an area above the nearest identified resistance level. I have adjusted the resistance to become a little higher, but there is no essential change to the technical picture, which remains dominated by a strong, long-term bearish trend line and resistance making its presence felt by weighing on the price. I maintain a bearish bias and note that the price has a reasonably wide room to move down as there is no key support until $7,825.

There is nothing due today concerning the USD.

This article provided by NewsEdge.