BTC/USD Forex Signal - Wednesday, August 22

Yesterday’s signals were not triggered, as there was no bearish price action at $6,671, and insufficiently bearish price action at $6,805

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades must be entered from 8am London time to 5pm Tokyo time, over the next 24-hour period only.

Long Trade

Go long after a bullish price action reversal on the H1 time frame following the next touch $6,636.

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 $6,805.

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 saw this pair as stuck in a boring range, with no trend on any time frame. Recent hours have seen the picture become more bullish, with a sudden strong spike pushing the price up above the nearest resistance. The price now seems to be getting support at a new flipped resistance-to-support level at $6,636. I will have a bullish bias today, as long as the price can stay above that level.