Topdown Analysis Of DOGEUSDT Using Support And Resistance Strategy And RSI Indicator As A Confluence
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Hello great minds,
It is another great day and I feel honored to come before you all today to share my analysis on Dogeusdt.
I believe you are doing perfectly fine and are enjoying your activities in the community as you actively promote steemit across various social media platform.
Doge coin is not an unpopular cryptocurrency in the cryptospace, it is known to be a meme coin influenced by Elon musk.
I decided to take an analysis on Doge coin today, please tag along.
ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY
My analysis using support and resistance strategy often start from the higher timeframe to the lower timeframe.
On the higher timeframe, my aim is to detect the overall market trend, to check if the market is bearish or bullish overall, as this will play a crucial role in affecting my trading decisions.
And also the monthly timeframe, filters out noise from the chart and this will enable traders to make a more informed trading decision.
The above screenshot is that of dogeusdt on the monthly timeframe and as seen above there is the formation of bullish and bearish candles.
Also, we can see that there are lesser candles on this timeframe, and it is easier for the market trend to be identified.
And from the above screenshot, we can say that overall the market is still bearish although it's latest leg is being bullish.
And there are lesser noise on this timeframe which makes analysis here easier.
I then moved to the weekly timeframe for more market analysis, and on this timeframe I can see that there are more candlestick than on the monthly timeframe.
And on this timeframe, I was able to detect a key market level, and this level is functioning as a resistance level for the market.
And it is expected that the market gets rejected when it gets to this level, as it has previously been rejected by this level.
Then I decided to move to the daily timeframe to continue my analysis.
Getting to the daily timeframe, I could see more market analysis, and more noise in the market.
Looking carefully at the market, I was able to spot another key level on this timeframe, and this level is functioning as a support level to the market.
And as seen above, the market has been rejected by this level, and the market has retraced to retest this level again.
And when this level has been properly tested, I expect to see a bullish rejection, and from there, I'll join the market upwards.
I then continued my analysis on the 4hr timeframe, and on this timeframe, I could see lots of market noise and manipulation.
Also I was able to spot another key level, and this level is functioning as a resistance level to the market price.
This level has been respected by the market severally before, and it is on this level I intend to place my take profit position.
I then move to the 2hr timeframe, as it is on this timeframe that I take my entry into the market.
And from this, my bullish bias has been strengthened and I decided to search for confluence using the rsi indicator.
CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR
The rsi indicator is a very important technical tool that is used in analysing the cryptomarket.
This Indicator is used to detect overbought and oversold market regions and this inturn influences my trading decisions.
When the market is overbought, it is a bearish trend reversal signal and when the market is oversold, it is a bullish trend reversal signal.
I then decided to apply this Indicator to the monthly timeframe first, before other timeframes.
Applying the rsi to the monthly timeframe, I noticed that the rsi has crossed above the 80% line.
And this is an indication that the market is being overbought, and this signals a bearish trend reversal.
This implies that the market is expected to embark on a bearish move, and then I decided to check on the daily timeframe for more analysis.
On the daily timeframe, I noticed that the rsi has crossed below its 20% line and this is an indication that the market is being oversold.
An oversold market is expected to be bought, and as such we expect to see the market embark on a bullish move.
And this is in alliance with my analysis using support and resistance strategy.
I then decided to move to the 2hr timeframe to search for an entry into the market.
And on this timeframe, I also noticed that the market is being oversold and it is expected to embark on a bullish move.
I then decided to enter the market from the closest support level, and I placed my take profit level on the closest resistance level to the market, and this can be seen above.
CONCLUSION
Doge coin is a token with good fundamental, and this can be confirmed from its historical activities.
I have shared my analysis on Dogeusdt, and I don't want it to be taken as a financial advise.
Thank you all for reading my post.
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