BTC/USD Forex Signal – 24 May 2018

Yesterday’s signals may have produced a losing long trade from the support at $7,825.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trades

— Go long after a bullish price action reversal on the H1 time frame following the next touch of $7,500, $7,437, or $7,314.

— 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 $7,825 or $8,051.

— 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 I thought that a deeper move down was likely to happen, to the $7,500 area. I had a bearish bias below $7,825. This is exactly what happened, and we now have some buying from $7,500 which is a key psychological level. The buying looks relatively convincing, so I think it is a little more likely that the price will reach the nearest resistance at $7,825 before it will test the support at $7,500 again. There is a confluence with a long-term bearish trend line at the resistance, so it is likely to be a key test. I have no directional bias now beyond what I already said but would become bearish if there is a convincing reversal at $7,825. There is a long-term bearish trend and the ridiculously bullish claims that have made for Bitcoin even as it drops by 70% in value over 6 months are being exposed.

There is nothing due today regarding the USD.

This article provided by NewsEdge.