BTC/USD Forex Signal - Wednesday, Dec. 19

Yesterday’s signals were not triggered, as there was no bearish price action when the price reached $3,593.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered before 5pm Tokyo time today only.

Long Trades

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $3,593, $3,450, or $3,274.
  • 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 ride.

Short Trade

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of the bearish trend line currently sitting at about or $3,925 or $4,055.
  • 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 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 we now had a more bullish technical picture, especially because the long-term bearish trend line had been broken to the upside. I expected that some kind of consolidation around $3,500 was probably going to be the most likely outlook over the short-term. I had no directional bias yesterday and preferred to sit on the side. I was correct to see the picture as more bullish, but I underestimated the bullishness. The picture is bullish still, with another strong move and a break above former resistance. We now see the price holding up quite firmly and new higher support levels. I would take a bullish bias here today if we get a retracement back down to about $3,600 followed by a strong bullish bounce.

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