TRXUSD slumps -5.91% on high volume
Tron/US Dollar Index (TRXUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
TRXUSD finished Sunday at 0.02881 tanking $0.00181 (-5.91%) on high volume. This is the biggest single-day loss in over two months. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TRXUSD as at Nov 22, 2020):
Sunday's trading range has been $0.00346 (11.3%), that's far above the last trading month's daily average range of $0.00137. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TRXUSD.
Two candlestick patterns are matching today's price action, the Tweezer Top which is known as bullish pattern and one bearish pattern, the Black Candle. The last time a Tweezer Top showed up on December 29, 2018, TRXUSD actually lost -4.37% on the following trading day.
After having been unable to move above 0.03079 in the previous session, the cryptocurrency ran into sellers again around the same price level today, failing to move higher than 0.03079.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 0.02582.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Tweezer Top" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for TRON/USD. Out of 2 times, TRXUSD closed lower 100.00% 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 100.00% with an average market move of -3.26%.