BTC/USD: Watch for bullish breakout opportunity

Last Thursday’s signals may have produced a losing trade from the bearish rejection of the resistance level at $11,539 but the entry candlestick was very large and so would have been best ignored.

Today’s BTC/USD Signals

Risk 0.50% per trade.

Trades may only be entered prior to 5 pm Tokyo time Tuesday.

Long Trade Ideas

• Go long after a bullish price action reversal on the H1 time frame following the next touch of $11,407, $11,185, or $11,023.
• Place the stop loss $50 below the local swing low.
• Move the stop loss to break even once the trade is $50 in profit by price.
• Take off 50% of the position as profit when the trade is $50 in profit by price and leave the remainder of the position to run.

Short Trade Ideas

• Go short after a bearish price action reversal on the H1 time frame following the next touch of $11,553, $11,804, $11,959, or $12,105.
• Place the stop loss $50 above the local swing high.
• Move the stop loss to break even once the trade is $50 in profit by price.
• Take off 50% of the position as profit when the trade is $50 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.