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 continued my analysis by moving to the weekly timeframe, and as expected, this timeframe has more candlestick than the monthly timeframe.

And on this timeframe, I was able to spot a key level and this level will be functioning as a resistance level to the market price.

On this level, there are more sellers than buyers and as such, we expect to see a bearish rejection candle, as the buyers cannot drive the market above this level.

And moving to the daily timeframe, I could see the noise in the market, as the presence of the buyers and sellers can be clearly seen.

And from the above screenshot, I can see the strength of the bears over the bulls as the market keeps forming lower lows and lower highs.

And then I was able to spot a key level and this level is functioning as a support level to the market price, and on this level, the buying pressure is high.

And I can see that the market has traded towards this level, and I can expect to see the formation bullish rejection candles on the market.

Inorder to get more details of the market, I proceeded to the 4hr timeframe, and on this timeframe, I could see more noise in the market.

And looking carefully at the market, I noticed that the market has traded towards this support level and have been rejected by this level.

Whenever the market trades towards a support level, it is expected for the market to be rejected to the upside as there are much buyers on a support level than sellers, unless the selling pressure is very strong.

On the 2hr timeframe, the market became clearer and I could see the market rejection more clearly.

And from this screenshot above, I spotted another level and is is believed that this level be a liquidity level, that is, there are liquidity lieing on this level.

And as such, I expect the market to trade upward to take out this liquidity, but before entering the market, 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 has crossed below the 20% line, and this is an indication that the market is being oversold.

An oversold market is one that signals a bulllish trend reversal, that is, a change in market strength from the sellers to the buyers.

Adding the rsi to the daily timeframe, I noticed that the market has gotten above its 80% line and this is an indication that the market is being overbought.

An overbought market is one that signals a bearish trend reversal of the market, that is, the change in market power from the buyers to the sellers.

And as such, I decided to search for my entry on the 2hr timeframe.

Getting to the 2hr timeframe, I noticed that the rsi 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, that is, it signals the strength of the buyers over the sellers.

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