WAVESUSD finds buyers around 1.51 for the third day in a row
Waves/US Dollar Index (WAVESUSD) Technical Analysis Report for Aug 01, 2020 | by Techniquant Editorial Team
WAVESUSD finished Saturday at 1.57 gaining $0.05 (3.29%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Friday's high at 1.55, WAVES/USD confirmed its breakout through the previous session high after trading up to $0.02 above it intraday.
Daily Candlestick Chart (WAVESUSD as at Aug 01, 2020):
Saturday's trading range has been $0.06 (3.95%), that's below the last trading month's daily average range of $0.14. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for WAVESUSD.
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 Last Engulfing Top Pattern. The last time a Bullish Short Candle showed up on February 23rd, WAVESUSD actually lost -5.52% on the following trading day.
The market found buyers again today around 1.51 for the third trading day in a row after having found demand at 1.51 in the prior session and at 1.50 two days ago.
While the cryptocurrency is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the nearby swing high at 1.64 where further buy stops might get triggered.
Among the 11 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. Although it is usually interpreted as bullish, it has actually shown to be bearish for WAVES/USD. Out of 155 times, WAVESUSD closed lower 54.84% 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 three trading days, showing a win rate of 61.29% with an average market move of 0.13%.
With seven out of the seven Major Cryptocurrencies closing higher today, the ones that stand out on the positive side are XRPUSD gaining 12.04% and ETHUSD closing 11.71% higher. None of the markets ended the day in the red. Looking at the other Minor Cryptocurrencies, the winners of the day have been ZECUSD surging 19.59% and DOGEUSD closing 15.6% higher. The worst performers of the day have been STRATBTC tanking -4.08% and ARDRBTC closing -4.0% lower. Read more