BTC/USD Forex Signal - Monday, August 13

Last Thursday’s signals produced a mildly profitable trade following the very large outside candlestick which rejected the identified support level at $6,178 on the hourly chart last Thursday.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered between 8am London time and 5pm Tokyo time, during 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 $6,178 or $5,950.
• Place 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 bearish price action reversal on the H1 time frame following the next touch of $6,671 or $6,805.
• Place 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 last Thursday that I would be very happy to take a bearish bias here below the support at $6,178. The support held all day, so I did not take such a bias, which was a good call. The last few days have seen the price turn more bullish, and we see a bullish “over and under / Quasimodo” pattern forming based upon the support at $6,178. The price is at recent highs, so it is hard to say if it will go higher, but there seems to be some amount of bullish momentum. I think higher prices are more likely over the coming hours than lower prices.

(Click on image to enlarge)

There is nothing important due today concerning the USD.