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.

As usual, I continued my analysis by moving to the weekly timeframe, and on this timeframe, I could see more market activities, as each candle on this timeframe is formed within the space of 7days.

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

It is believed that there are more sellers than buyers on this level, and as such, we see a market reaction whenever the market trades towards this level.

To get more market details, I moved to the daily timeframe, and on this timeframe, I could see series of candlestick, as the buyers and sellers are showing their strength in the market.

On this timeframe, I was able to identify a key level, and this level is functioning as a support level to the market price.

And looking carefully, I noticed that the market has broken below this support level, and as such, I expect for the market to retrace to retest this broken level, and as such, I can continue my analysis.

Getting to the 4hr timeframe, I realised that the market was noisier than the daily timeframe.

And also, I discovered that the market is retracing to to retest this broken level, and it is expected for the market to continue on its bearish trend after retesting this broken support level.

And to continue my analysis, I decided to move to the 2hr timeframe, as it is where I take my entry into the market.

Getting to the 2hr timeframe, I could see the market more clearly, and I was able to spot a low which I expect the market to take out in its bearish move.

With this, my bearish bias of the market continued and 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 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 has recently moved from its 80% line, and is gradually approaching its 20% line.

From the above screenshot, we can see that the rsi has crossed below its 50% line and when it gets to its 20% line, we can say that the market is being oversold.

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

Applying the rsi to the daily timeframe, I can see that the market is gradually approaching its 50% line from the oversold region.

And when it approaches it's 80% line, we can say that the market is being overbought, and an overbought market signals a bearish trend reversal of the market.

A change in market power from the bulls to the bears and this is in alliance with my analysis using support and resistance strategy.

And getting to the 2hr timeframe where I Search for entry into the market, I noticed that the rsi has gotten to its 20% line.

This is saying that the market is being oversold, and from my analysis, I expect to see a bullish retracement on the market before it's continues its bearish move.

And as such, I placed my entry on the closest resistance level to the market, and my take profit was placed on the market closest support 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