7 Aug 2017
USD/NOK shows indecisive pattern
Trend momentum has stalled with the emergence of a Northern doji pattern on the USD/NOK weekly chart.
This candlestick pattern usually changes the market's short-term trend from up to neutral, but with the RSI above 60% on this time interval, the likelihood of a reversal from overbought territory increases.
Additionally, an ADX above 30 is indicative of a persistent trend at least. Reactions to this signal can take the form of traders liquidating longs, selling calls, and trailing up stops.
This candlestick pattern usually changes the market's short-term trend from up to neutral, but with the RSI above 60% on this time interval, the likelihood of a reversal from overbought territory increases.
Additionally, an ADX above 30 is indicative of a persistent trend at least. Reactions to this signal can take the form of traders liquidating longs, selling calls, and trailing up stops.