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.

Then I decided to move to the weekly timeframe, and on this timeframe, I could see more candlestick, and this is because each candle on this timeframe is formed within the time period of 7days.

And looking carefully at this timeframe, I was able to identify a key level and this level is functioning as a resistance level to the market, and it is expected for the market to be rejected whenever it trades towards this level.

And as expected, we can see that the most recent bearish move on the weekly timeframe is as a result of the market rejection from this resistance level.

And moving to the daily timeframe, I could see series of market activities as the daily timeframe has become noisy.

And looking at it very carefully, I was able to spot another key level and this level is functioning as a support level to the market.

And the market is expected to be rejected whenever it trades towards this level, unless the selling pressure increases and takes the price lower.

And getting to the 4hr timeframe, I could see the market clearly and I could see lots of activities in the market.

And looking carefully, I realized that the bears are in control of the market as it keeps forming lower lows and lower highs as it gradually approached my support level.

And when I looked, I could see a bullish market rejection on this timeframe, and this rejection is from the support level on the price chart.

And this gave me a bullish bias of the market and I decided to move to the 2hr timeframe in search of my entry into the market.

And getting to the 2hr timeframe, I could see the bullish rejection very clearly and as such, I decided to mark out my preferred take profit level.

This take profit level is a level I expect the market to trade towards, and with my bulllish bias, I decided to search for confluence using the 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.

Applying the rsi to the monthly timeframe, I noticed that the market is being oversold and this is because the rsi has crossed below its 20% line.

And an oversold market is one that signals a bullish trend reversal, that is, the change in market strength from the bears to the bulls.

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

Applying the rsi on the daily timeframe, I could see that the rsi has moved above its 20% line and is approaching its 80% line.

When it does get to its 80% line, we can say that the market is being overbought and an overbought market signals a bearish trend reversal of the market.

And then, I decided to move to the 2hr timeframe in search of my entry.

And getting to the 2hr timeframe, I placed my entry on the closest support level to the market and my take profit was placed on the closest resistance level to the market, and this can be confirmed from the above screenshot.

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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.