BTC/USD Forex Signal - Wednesday, May 2

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 must be taken before 5pm Tokyo time, during the next 24-hour period only.

Short Trade

  • Go short after a bearish price action reversal on the H1 time frame following the next touch of the bearish trend line shown in the price chart below which is currently situation at about $9,300.
  • Place 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.

Long Trades

  • Go long after a bullish price action reversal on the H1 time frame following the next touch of $8,893 or $8,679.
  • Place 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.

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 I expected that the price would go higher today. After an initial dip down to retest the supportive area at about $8,900 the price did rise. It currently looks as if it may be turning bearish at $9,150 which might become a new resistance level after having previously acted as support. There is also a minor support level confluent with the round number at $9,000. All these factors suggest that the action is likely to be messy and hard to predict today, so day traders might be wise to stand aside for the time being.

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