WAVESUSD pops to highest close since May 5, 2018
Waves/US Dollar Index (WAVESUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
WAVESUSD ended Sunday at 7.07 surging $0.85 (13.67%) on high volume. Today's close at 7.07 marks the highest recorded closing price since May 5, 2018. Closing above Saturday's high at 6.88, WAVES/USD confirmed its breakout through the prior session high after trading up to $0.83 above it intraday.
Daily Candlestick Chart (WAVESUSD as at Nov 22, 2020):
Sunday's trading range has been $1.93 (31.03%), that's far above the last trading month's daily average range of $0.51. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly higher than usual for WAVESUSD.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bullish Outside Bar. The last time this happened on Wednesday, WAVESUSD gained 12.33% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Last Engulfing Top Pattern.
Crossing above the upper Bollinger Band for the first time since Friday, prices have shown unusually strong upward momentum in the short-term. This might either indicate a potential buying climax after which prices could head back down towards the mean of the Bollinger Bands at 4.46 or signal the beginning of a strong momentum breakout leading to even higher prices.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "52 Week High" stand out. Its common bullish interpretation has been confirmed for WAVES/USD. Out of 28 times, WAVESUSD 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 60.71% with an average market move of 41.80%.