BTC/USD Forex Signal - Tuesday, Feb. 20

Yesterday’s signals may have produced a losing short trade from a bearish pin candlestick rejecting the resistance level at $11,531. The candlestick was very small, so note that small pin candlesticks are usually less reliable than larger ones.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered by 5pm Tokyo time, during the next 24 hours only.

Long Trades

Long entry after a bullish price action reversal on the H1 time frame following the next touch of $10,894 or $10,164.

Put 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 $11,532.

Put 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

Yesterday I had a bullish bias, and happily, the price has continued to rise. The picture now looks still a little more firmly bullish, with a clear trending structure of higher lows and highs supported by trend lines, as well as a new support level at $10,894. The most interesting technical development is the lack of any resistance beyond $11,532 until $13,218, suggesting the price could start to move up a lot more quickly if $11,352 is broken. There is no reason not to have a bullish bias.