WAVESUSD plunges -8.26% closing $0.56 lower
Waves/US Dollar Index (WAVESUSD) Technical Analysis Report for Nov 21, 2020 | by Techniquant Editorial Team
WAVESUSD ended Saturday at 6.22 tanking $0.56 (-8.26%). This is the biggest single-day loss in over two months. The last time we've seen such an unusually strong single-day loss on October 6th, WAVESUSD actually gained 5.53% on the following trading day. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (WAVESUSD as at Nov 21, 2020):
Saturday's trading range has been $0.85 (12.54%), that's far above the last trading month's daily average range of $0.42. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for WAVESUSD.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 4.27.
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 Price Action based market condition "Strong Down Move" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for WAVES/USD. Out of 74 times, WAVESUSD closed higher 50.00% 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 47.30% with an average market move of 1.61%.