BTC/USD Forex Signal: Narrowing Triangle Chart Pattern

Traders might look to go short there at a bearish reversal, or long if there are two consecutive hourly closes above it.

My previous BTC/USD signal on 28^th September was not triggered as there was no bearish price action when the resistance levels which I had identified were first reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may only be entered before 5pm Tokyo time Wednesday.

Long Trade Idea

Go long after a bullish price action reversal on the H1 timeframe following the next touch of $26,839.
Place the stop loss $100 below the local swing low.
Adjust the stop loss to break even once the trade is $100 in profit by price.
Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.

Short Trade Ideas

Go short after a bearish price action reversal on the H1 timeframe following the next touch of $27,750, $28,206, or $28,652.
Place the stop loss $100 above the local swing high.
Adjust the stop loss to break even once the trade is $100 in profit by price.
Remove 50% of the position as profit when the trade is $100 in profit by price and leave the remainder of the position to run.

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 in my previous BTC/USD analysis on 28^th September that if anything, I suspected an upwards price movement beyond the current range is suggested as more likely than a downwards one from the recent price action.

This was a good call.

The technical picture now has changed a bit – the price has risen over the past couple of weeks, but over recent days has traded within a narrowing, consolidating triangle pattern.

There is a resistance level within this triangle at $27,750 which looks quite likely to hold if reached, so it will probably be today’s pivotal point.

Traders might look to go short there at a bearish reversal, or long if there are two consecutive hourly closes above it.

(Click on image to enlarge)

BTC/USD