Topdown Analysis Of DOGEUSDT Using Support And Resistance Strategy And RSI Indicator As A Confluence
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 screenshot above is that of Dogeusdt on the monthly timeframe, and on this timei, we can see candlestick.
And from the chart above, it is very easy for the market trend to be detected.
And from the screenshot above, we can see that the pair Dogeusdt is bearish overall as it contains lower lows and lower highs.
With this, I decided to move to the weekly timeframe to continue my analysis.
Then moving to weekly timeframe, I could see more market activities, more candlesticks and on this timeframe, each candlestick was formed within the period of 1 week.
And on this timeframe, I detected a key level on the market, and this level is functioning as a strong resistance level in the market.
And when the market gets to this level, we expect to see a rejection to the downside, and from this we can join the market move.
Then I moved to the daily timeframe for more market analysis, and I saw more noise in the market.
On this timeframe, I was able to spot a new level which is functioning as a resistance level to the price chart, and when the market gets to this level, it gets rejected to the downside.
Then as I looked carefully, I saw that the market was approaching the resistance level, and when it gets to this level, I expect to see a fall in market price.
Then moving to the 4hr timeframe, I could see more market activities, more candlestick.
And on this timeframe, there were many candlestick, each of these candles were formed within the space of 4hr.
Then I noticed that the market has impulsively broken this resistance level, but I see this to be a fakeout.
From my view, I expect the market to correct itself and continue on a bearish move.
Then I moved to the 2hr timeframe where I take my entry into the market.
And from this level, I can see the market more clearly, and with my bias, I expect a fall in market price.
Before entering the market, I decided to search for confluence using 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 the indicator to the monthly timeframe, and on this timeframe, we can see that the market is being overbought.
We detect an overbought market because the rsi has crossed above it's 80% line, and this is a bearish trend reversal signal.
And this is in confluence with my analysis using support and resistance strategy.
Then I moved to the daily timeframe and applied the rsi Indicator
From the Indicator, I can see that the market is being overbought, and this is a bearish trend reversal signal.
This signal is in allignment with my support and resistance strategy, and with this, I moved to the 2hr timeframe for my entry into the market.
Then moving to the 2hr timeframe, I also noticed that the market is being overbought.
And with this, I found a way to join the market to the downside, and I joined with the resistance level.
I placed my entry on the resistance level and my take profit on the closest support level.
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.
https://twitter.com/JuecoYoung/status/1762955564772896826