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BTC/USD Forex Signal – Thursday, Sept. 6

By Kurt Osterberg · On September 6, 2018

Yesterday’s signals were not triggered, as there was no bullish price action at $7,333 or $7,128.

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 $6,170 or $5,950.

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

I wrote yesterday that we are seeing a real medium-term bullish trend which was continuing, but I felt a little cautious as the volatility and momentum seem to be shrinking which suggest a deeper bearish retracement is becoming more likely. The second half of that sentence was prophetic as we have seen a very sharp drop in Bitcoin and all the major cryptocurrencies as Goldman Sachs have announced they are abandoning their plans to start a crypto trading desk. This was the largest short-term movement we have seen in Bitcoin for months after a long period of declining volatility. It will be interesting to see now whether the volatility remains high or settles down again. I suspect that it will be a one-off event and the price will settle as it was a serious, massive breakdown of a bullish trend which ran out of momentum. For this reason, I would prefer to take a short trade from the nearest resistance rather than a long trade from the nearest support.