BTC/USD Forex Signal - Tuesday, Oct. 16

Yesterday’s signals may have produced a long trade off the support at $6,353 which is in profit, but I do not feel confident about it.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may be entered until 5pm Tokyo time, during the next 24-hour period only.

Long Trades

• Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,353, $6,263, or $6,171.
• 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 run.

Short Trades

• Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,679 or $6,811.
• 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 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 yesterday that after a huge spike like this it was probably best to stay away, although a long trade from a bounce at the new higher support of $6,353 might be interesting.

This was a pretty good call as we did get a very quiet long trade entry at $6,353 but the price looks only as if it is going to calm now, although I may be wrong. So, I take the same analysis today, thinking that the price here looks likely to consolidate after such a massive price spike which essentially went nowhere yesterday.

Still, due to the slightly bullish action plus the fact that the support at $6,353 held, I take a slightly bullish bias here above $6,353.

(Click on image to enlarge)

There is nothing important due today concerning the USD.