LSKUSD closes within previous day's range after lackluster session
LSK/US Dollar Index (LSKUSD) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
LSKUSD finished the week 0.9% higher at 1.12 after flat today. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LSKUSD as at Oct 23, 2020):
Friday's trading range has been $0.01 (0.89%), that's far below the last trading month's daily average range of $0.05. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for LSKUSD.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Hanging Man showed up on August 10th, LSKUSD lost -6.49% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 1.17 where further buy stops might get triggered. Selling could accelerate should prices move below the nearby swing low at 1.06 where further sell stops might get activated. As prices are trading close to October's low at 1.04, downside momentum could speed up should the cryptocurrency mark new lows for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bearish for LSK/USD. Out of 502 times, LSKUSD closed lower 46.22% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after eight trading days, showing a win rate of 55.38% with an average market move of 0.63%.