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.

I then decided to continue the analysis on the weekly timeframe, and on this timeframe, I could see that there are more candles than on 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 whenever the market trades towards this level, we can expect to see a bearish rejection.

And looking carefully, I noticed that this level is a valid level because it has been severally tested and respected by the market, and it is responsible for the current bearish move of the market.

Moving to the daily timeframe, I realised that the market is more noisy than the weekly timeframe, as on this timeframe, the buyers and sellers are showing their presence.

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

The market has tried severally to break above this level but it has been unable to, and as such, we can expect the market to experience bearish rejections when it gets to this level.

And getting to the 4hr timeframe, I could see the market more clearly, and I could see the strength of the bears in the market over the bulls.

And from my analysis on the 4hr timeframe, I noticed that the market has gotten to a level it is finding it difficult to break below, and this level has been spotted above.

And from the structure of the market, I expect to see bullish retracement of the market towards this resistance level, and then it can continue its bearish move.

And then I decided to move to the 2hr timeframe as It is on this timeframe that I search for entry into the market.

And getting to the 2hr timeframe, I noticed that the market is gradually retracing towards this support level.

And when the market tests this level, I can proceed to take my bullish entry on the market but before then, 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 rsi indicator has crossed below 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.

It shows the weakness of the bears and the strength of the bulls in the market.
And this is in alliance with my analysis using support and resistance strategy.

Applying the rsi to the daily timeframe, I realized that the rsi has gotten to its 20% line.

And as explained earlier, it is a market signal showing the weakness of the sellers and the strength of the buyers in the market, as they are about to take the market upwards.

With this, we can expect to see the formation of bullish candles indicating the strength of the buyers in the market.

And getting to the 2hr timeframe, I noticed that the market is oversold,as the rsi has crossed below its 20% line.

And as such, I placed a buy order on the market, as I placed my entry on the most recent support level to the market and my take profit on the closest resistance level to the market, just as seen above.

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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