BTC/USD Forex Signal - Tuesday, Nov. 6 -

BTC/USD Forex Signal – Tuesday, Nov. 6

Nov 06, 2018Jeremy ParkinsonFinance, No picture0

Yesterday’s signals were not triggered, as unfortunately the bullish price action took place below the support level at $6,379.

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trade

Go long after a bullish price action reversal on the H1 time frame following the next touch of $6,374, $6,313 or $6,290.

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

Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,679.

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 the technical picture now looked more bullish, with new higher support levels. The level nearby at $6,379 looked likely to be pivotal and if the price bounced strongly there, I would take a (weak and cautious) bullish bias.

My instinct was correct, but I was a little out with the level – the price bounced just below it and has continued to advance since that swing low. However, the bullish action is quite slow, and we have still not broken any recent highs. For this reason, although I would still say the picture is bullish, I would not be confident that the price will necessarily advance higher right away. I would take a bullish bias if there was a retracement to and bullish bounce at $6,374.