WAVESUSD pushes through Thursday's high
Waves/US Dollar Index (WAVESUSD) Technical Analysis Report for Oct 23, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, WAVESUSD finished the week 10.13% higher at 3.37 after gaining $0.13 (4.01%) today. Today's close at 3.37 marks the highest recorded closing price since September 1st. Closing above Thursday's high at 3.28, WAVES/USD confirmed its breakout through the previous session high after trading up to $0.29 above it intraday.
Daily Candlestick Chart (WAVESUSD as at Oct 23, 2020):
Friday's trading range has been $0.39 (12.04%), that's far above the last trading month's daily average range of $0.23. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for WAVESUSD.
Unable to break through the key technical resistance level at 3.56 (R1), the cryptocurrency closed below it after spiking up to 3.57 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on October 16th, WAVESUSD actually gained 8.14% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for WAVES/USD. Out of 206 times, WAVESUSD closed lower 58.25% 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 55.34% with an average market move of -1.05%.