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.

And getting to the weekly timeframe, I noticed that there are more candlestick than the monthly timeframe.

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

And this level can be said to be a valid level as it has been severally tested and respected by the market, and looking carefully, I noticed that the latest bearish leg from the above screenshot was as a rejection from this resistance level.

And getting to the daily timeframe, I could see the market more clearly, I could feel the presence of the bears and bulls as they struggle to push the market to their preferred direction.

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

And the market has made several touches on this level and has been unable to break below this level unless for cases of increased selling pressure.

And looking carefully, I could see a bullish rejection of the market, as the buying pressure on this level is high.

Getting to the 4hr timeframe, I could see intense trading activities in the market, I could feel the pressure from the buyers and sellers.

And looking carefully, I noticed market rejection from this support level, I could see the formation of several bullish candles, and this can be my confirmation to enter a buy on the market.

And with this bias, I decided to move to the 2hr timeframe in search of entry into the market.

Getting to the 2hr timeframe, I could see the market more clearly, I could see the pressure from the buyers and sellers as they manipulate the market to their preferred direction.

And I can see the bullish rejection very clearly, as the bulls are trying to take control of the market, and before entering the market, I decided to add the rsi as a confluence to my entry.

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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 rsi is gradually approaching its 20% line, and this is an indication that the market is being oversold.

An oversold market is one that signals a bulllish trend reversal of the market, that is, it is a market that shows the weakness of the bears and strength of the bulls.

And with this, I decided to move to the daily timeframe for more market information.

Applying the rsi to the daily timeframe, I noticed that the rsi has crossed above its 80% line.

And this indicates that the market is being overbought, and an overbought market signals a bearish trend reversal of the market.

This market is one that also explains the weakness of the buyers and the strength of the sellers in the market.

On the 2hr timeframe, I noticed that the rsi has gotten to it's 20% line, and this is an indication that the market is being oversold.

And just as my analysis signals, we expect to see a bullish move on the market, and then I placed my buy order on the closest support level to the market, and my take profit was placed on the closest resistance level to the market.

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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.