BTC/USD Forex Signal - Monday, Sept. 17

Today’s BTC/USD Signals

Risk 0.75% per trade.

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

Long Trades

Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,416 or $6,171.

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 run.

Short Trades

Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,569 or $6,811.

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 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

The price has been unable to recover by much from its sudden and dramatic fall a couple of weeks ago. The price is in a long-term consolidating triangle, but the key thing here is really the fact that the crucial resistance levels have held. The support level at $6,171 looks likely to be very strong as it is confluent with the supportive trend line from the triangle, whereas the higher support at $6,416 looks much weaker. In fact, I think it is likely to break down, which should trigger a further fall. Therefore, I would be bearish today following a strong reversal at $6,569 of after the price gets established below $6,416.