KMDUSD dominated by bears dragging the market lower throughout the day
Komodo/US Dollar Index (KMDUSD) Technical Analysis Report for Oct 25, 2020 | by Techniquant Editorial Team
KMDUSD finished Sunday at 0.50 losing $0.02 (-3.85%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Saturday's low at 0.51, the market confirmed its breakout through the prior session low after trading up to $0.01 below it intraday.
Daily Candlestick Chart (KMDUSD as at Oct 25, 2020):
Sunday's trading range has been $0.02 (3.85%), that's slightly below the last trading month's daily average range of $0.03. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for KMDUSD.
Notwithstanding a strong opening the cryptocurrency closed below the previous day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on October 20th, KMDUSD actually gained 4.17% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for KMD/USD. Out of 193 times, KMDUSD closed higher 47.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 43.52% with an average market move of 3.26%.