BTC/USD Forex Signal - Monday, Oct. 8 -

BTC/USD Forex Signal – Monday, Oct. 8

Oct 08, 2018Jeremy ParkinsonFinance, No picture0

Last Thursday’s signals were not triggered, as the bullish price action took place a little below the support level at $6,534.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trades

Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,493 or $6,353.

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 Trades

Go short after a bearish price action reversal on the H1 time frame following the next touch of $6,679 or $6,811.

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 last Thursday that Bitcoin was looking very indecisive and hard to predict, as it arrived near the point of a long-term consolidating triangle formation. I thought the best that could be said was that the situation would become bullish above $6,679 and bearish below $6,353. As both levels have held, my outlook has not changed dramatically, but I do note that we have had a quiet bullish break out of the consolidating triangle, so I now take a weakly bullish bias, seeing the best potential trade set-up as a long trade following a healthy bullish bounce following a rejection of the support level at $6,493. A sustained break above $6,679 would be a very bullish sign.