BTC/USD Forex Signal - Wednesday, Sept. 5

Yesterday’s signals were not triggered, as none of the key levels were ever reached.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trades

Go long after a bullish price action reversal on the H1 time frame following the next touch of $7,333 or $7,128.
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 Trade

Go short after a bearish price action reversal on the H1 time frame following the next touch of $7,685.
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 yesterday that it still looked as if we were seeing a short-term topping out at $7,300 which looked likely to push the price down to the support level at $7,128. This looked likely to be good support, so a long trade entry there following a bullish bounce was the potential trade to watch for. I had a bullish bias above $7,300 or at a bounce at $7,128.

This was a good call as the price eventually broke above $7,300 and continued to rise a little further, so it was right to take a bullish bias here. We have new “stairstep” support at $7,333 so the bullishness continues. We are seeing a real medium-term bullish trend, but I feel a little cautious as the volatility and momentum seem to be shrinking which suggest a deeper bearish retracement is becoming more likely. I would be bullish following a strong bounce at either of the nearest support levels today.

(Click on image to enlarge)

BTCUSD