TRXUSD still stuck within tight trading range
Tron/US Dollar Index (TRXUSD) Technical Analysis Report for Oct 26, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TRXUSD ended Monday at 0.02686 losing $0.00014 (-0.52%). Trading $0.00051 higher after the open, TRON/USD was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TRXUSD as at Oct 26, 2020):
Monday's trading range has been $0.00141 (5.22%), that's above the last trading month's daily average range of $0.00103. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TRXUSD. Prices continued to consolidate within a tight trading range between 0.02610 and 0.02751 where it has been caught now for the whole last trading week.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Bearish High-Wave Candle which are both known as bearish patterns.
After trading as low as 0.02610 during the day, the cryptocurrency found support at the 20-day moving average at 0.02646. After spiking up to 0.02751 during the day, TRX found resistance at the 50-day moving average at 0.02751. The last time this happened on October 20th, TRXUSD actually gained 3.12% on the following trading day.
Tron shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish High-Wave Candle" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for TRON/USD. Out of 14 times, TRXUSD closed higher 64.29% 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 71.43% with an average market move of 75.81%.