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.

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ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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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.

Getting to the weekly timeframe to continue my analysis, I noticed that the candlesticks on this timeframe are more than those on the monthly timeframe, and this is because, each candle on this timeframe is formed to represent market activity of 1week.

And on this timeframe, I was able to spot a key level and this level is functioning as a resistance level to the market price.

And it is expected that when the market gets to this level, it gets rejected to the downside as there are more sellers than buyers on this level.

On the daily timeframe, I noticed that there are more candlestick than on the weekly timeframe.

On this timeframe, I was able to identify another level, and here this level will be functioning as another resistance level, and as we know, there are more sellers than buyers on this level, and this was what led to the bearish move of the market.

And with this, I decided to continue my analysis by moving to the 4hr timeframe, although I expect to see more noise on this timeframe.

On the 4hr timeframe, I noticed that the market has made several touches on a particular level and have been unable to break below this level.

And as such, I decided to mark this level, as the level is functioning as a support level to the market price, and it is expected for the market to be rejected upward when it trades towards this level.

And from this analysis, I expect to see a bullish rejection on the market as it has approached this support level, and before then, I decided to move to the 2hr timeframe, as it is on this timeframe that I search for an entry into the market.

Getting to the 2hr timeframe, I could see more market activities as expected.

And on this timeframe, I noticed that the market has already been rejected by this support level, and it is from this rejection that I expect to enter into the market but before then, I decided to search for a confluence using my relative strength index indicator.

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CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR

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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 market is being overbought as the rsi has crossed above its 80% line.

This is an indication that the bears are about to take control of the market, and the bulls are getting weaker in the market.

And this is in alliance with my analysis using support and resistance strategy.

And on this 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 signals a bulllish trend reversal, that is, a change in market strength from the sellers to the buyers.

With this, I decided to move to the 2hr timeframe in search for my entry.

Getting to the 2hr timeframe, I noticed that the rsi has crossed below its 20% line, and this is an indication that the market is being oversold.

And an oversold market signals a bulllish trend reversal, and as such, I placed my entry on the closest support level to the market, and my take profit was placed on the market closest resistance level, just as seen above.

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CONCLUSION

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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.