LTCJPY breaks back above 20-day moving average
Litecoin/Japanese Yen Index (LTCJPY) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
LTCJPY finished Sunday at 5022.22 gaining ¥67.57 (1.36%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LTCJPY as at Oct 18, 2020):
Sunday's trading range has been ¥111.94 (2.26%), that's far below the last trading month's daily average range of ¥206.54. 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 lower than usual for LTCJPY.
After moving lower in the previous session, Litecoin managed to close higher but below the prior day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on September 22nd, LTCJPY actually lost -3.39% on the following trading day. Additionally, three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern.
LTC managed to close back above the 20-day moving average at 5019.26. After having been unable to move above 5034.49 in the previous session, LTC/JPY ran into sellers again around the same price level today, missing to move higher than 5048.96.
The cryptocurrency shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Selling could speed up should prices move below the close-by swing low at 4874.04 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "White Candle" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for LTC/JPY. Out of 412 times, LTCJPY closed lower 59.22% 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 two trading days, showing a win rate of 57.77% with an average market move of -0.34%.
With six out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 2.69% and BCHUSD closing 1.76% higher. On the flipside the worst performer has been ETCUSD closing -0.36% lower. Looking at the other Minor Cryptocurrencies, the winners of the day have been BCNUSD surging 13.16% and VETBTC closing 5.15% higher. The worst performers of the day have been WAVESBTC tanking -5.27% and WAVESUSD closing -4.08% lower. Read more