QTUMUSD closes within previous day's range after lackluster session
QTUM/US Dollar Index (QTUMUSD) Technical Analysis Report for Oct 17, 2020 | by Techniquant Editorial Team
QTUMUSD finished Saturday at 2.18 gaining $0.01 (0.46%) on low volume. 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 (QTUMUSD as at Oct 17, 2020):
Saturday's trading range has been $0.04 (1.84%), that's far below the last trading month's daily average range of $0.10. 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 QTUMUSD.
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. After moving lower in the prior session, the cryptocurrency managed to close higher but below the previous day's open, forming a bullish Harami Candle. The last time this candlestick pattern showed up on October 7th, QTUMUSD gained 2.74% on the following trading day.
Although still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could speed up should prices move below the close-by swing low at 2.13 where further sell stops might get triggered. As prices are trading close to October's low at 2.10, downside momentum could accelerate should the market mark new lows for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. While it is usually interpreted as neutral, it has actually shown to be bearish for QTUM/USD. Out of 437 times, QTUMUSD closed lower 50.11% 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 10 trading days, showing a win rate of 53.32% with an average market move of -2.42%.
With four out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are ETHUSD gaining 0.81% and BTCUSD closing 0.37% higher. On the flipside the worst performers have been BCHUSD closing -2.05% lower and LTCUSD losing -1.43%. Looking at the other Minor Cryptocurrencies, the winners of the day have been WAVESUSD surging 8.14% and WAVESBTC closing 7.59% higher. The worst performers of the day have been BCNUSD tanking -10.94% and BCHBTC closing -2.26% lower. Read more