BTC/USD Forex Signal - Wednesday, August 29 -

BTC/USD Forex Signal – Wednesday, August 29

Aug 29, 2018Jeremy ParkinsonFinance, No picture0

Yesterday’s signals were not triggered, as the price never reached any of the key support or resistance levels.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be taken between 8am London time and 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 $6,867 or $6,570.

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 $7,266.

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 I took a bullish bias above $6,805. This worked out well as the price has continued to rise. I’ve adjusted the nearby support level upwards to match a previous inflection point at $6,867.

After flattening out, Bitcoin has been rising for some days, so there is a good reason to be bullish. However, the short-term action at $7,100 suggests that the price may be making a minor top and getting ready for a deeper retracement. I would, therefore, want to see the price break the high before being bullish today, or alternatively a pull back and strong bullish bounce at the support level of $6,867.