QTUMUSD closes higher for the 2nd day in a row
QTUM/US Dollar Index (QTUMUSD) Technical Analysis Report for Oct 18, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, QTUMUSD ended Sunday at 2.22 gaining $0.04 (1.83%) on low volume. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Saturday's high at 2.20, the market confirmed its breakout through the previous session high after trading up to $0.03 above it intraday.
Daily Candlestick Chart (QTUMUSD as at Oct 18, 2020):
Sunday's trading range has been $0.05 (2.29%), that's far below the last trading month's daily average range of $0.09. 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 QTUMUSD.
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. The last time a Bearish Hikkake Pattern showed up on October 12th, QTUMUSD lost -0.85% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Selling could accelerate should prices move below the close-by swing low at 2.13 where further sell stops might get activated. As prices are trading close to October's low at 2.10, downside momentum could speed up should QTUM/USD mark new lows for the month.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed above last periods high" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for QTUM/USD. Out of 181 times, QTUMUSD closed lower 61.88% 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 five trading days, showing a win rate of 59.67% with an average market move of -0.87%.
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