Topdown Analysis Of DYDXUSDT Using Support And Resistance Strategy And RSI Indicator As A Confluence

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Hello great minds,

I feel excited to come before you all this evening to relate with you on another interesting post in the community.

I trust you are all doing perfectly fine and are enjoying your activities in the community as you actively promote steemit across various social media platform.

Today I will be sharing my analysis on dydxusdt just as I used to in the community, please stay tuned.

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ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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Dydx is a good token in the cryptospace which is one reason I have chosen it for my analysis today.

And I will be sharing the latest price movement as at when this post was made.

I decided to begin my analysis on the monthly timeframe just as seen above.

And on this timeframe, we can see that there are less candles on the price chart, which indicates the presence of buyers and sellers in the market.

And also, the monthly timeframe helps to filter out noise from the market as each candle is formed within the time period of 1month.

Also on this timeframe, it is very easy for the market overall trend to be detected, and from the screenshot above, we can see that the market is being bearish overall.

Getting to the weekly timeframe, I was able to see more candlestick on the price chart, as each candle was formed within the range of 1week.

Checking properly on this timeframe, I was able to detect a key level and this level is functioning as a resistance level to the price chart.

And it is expected for the market to be rejected to the downside as there are more sellers on this level than buyers.

Getting to the daily timeframe, I could see series of market candles on this timeframe.

I could see the struggle between the buyers and sellers to push price to their preferred direction

Also, I was able to spot another key level on this timeframe, and looking carefully, this level is functioning as a support level to the market.

This level can be said to be a valid level as it has been severally tested and respected by the market and has not been broken by the market

Whenever price trades towards this level, there are always higher chances that the market is going to be rejected.

I then continued my analysis on the 4hr timeframe and on this timeframe, I could see series of market candles.

I could see noise in the market and this noise is characterized by manipulation between the buyer and the sellers.

On this timeframe, I could see the market more clearly, and i could see the market approaching the support level, and when it does, I expect to see a rejection to the upside.

I then continued to the 2hr timeframe as it is on this timeframe that I take my entry into the market.

From my analysis, I expect to see the market retrace to test it's support level and when this happens, I can be bulllish on the market.

And with this analysis, I decided to search for confluence using 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 trading tool in the cryptomarket.

The rsi indicator is used to spot oversold and overbought market regions.

And when a market is spotted to be oversold, it is a signal that the market is about to experience a bullish move.

And when a market is spotted to be overbought, it is a signal that the market is about to experience a bearish move.

Adding the rsi to the monthly timeframe, I noticed that the rsi has approached it's 80% line and this is an indication that the market is being overbought.

An overbought market is one known to signal a bearish trend reversal, that is a change in market power from the bulls to the bears.

And with this, I continued my analysis on the daily timeframe.

On the daily timeframe also, I noticed that the rsi has crossed above the 80% line and this is an Indication that the market is being overbought.

And an overbought market is a market that signals a change in market trend from the bullish to bearish.

Getting to the 2hr, a timeframe where I take my entry into the market, I noticed that the rsi is on its 20% line and this is an indication that the market is being oversold.

And an oversold market is a bullish trend reversal signal and with this I placed my buy order on the closest support level to the market price and my take profit was placed on the closest resistance level to the market.

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CONCLUSION

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Dydx is actually a very good token but before investing in it, I'll advise that you make your personal research about it.

My post was made for educational purpose and not as a financial advice.