XLMUSD closes within prior day's range
Stellar/US Dollar Index (XLMUSD) Technical Analysis Report for Nov 22, 2020 | by Techniquant Editorial Team
XLMUSD finished Sunday at 0.1043 losing $0.0052 (-4.75%) on high volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (XLMUSD as at Nov 22, 2020):
Sunday's trading range has been $0.0177 (16.16%), that's far above the last trading month's daily average range of $0.0059. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for XLMUSD.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top. The last time a Bearish Spinning Top showed up on November 15th, XLMUSD actually gained 2.87% on the following trading day.
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 while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 0.0840.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Its common bearish interpretation has been confirmed for XLM/USD. Out of 105 times, XLMUSD closed lower 58.10% 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 53.33% with an average market move of -0.50%.