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 on this timeframe, I noticed that there are more candles on this timeframe than on monthly timeframe.

Looking carefully, I was able to spot another 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 on the market.

And from the above screenshot, we can see that the most recent bearish leg of the market was as a result of rejection from this level.

To get more information on the market, I moved to the daily timeframe, and on this timeframe I could see the market more clearly.

I could feel the pressure from the buyers and sellers as they struggle to drive the market to their preferred direction, and looking carefully, I noticed that the bears were in control of the market as the market continues to create new lows.

And looking carefully, I was able to spot another key level and this level is functioning as a support level to the market, and whenever the market gets to this level, we can expect to see the formation of bullish candles.

Moving to the 4hr timeframe, I could see the market more clearly, i noticed that the market was creating lower lows and lower highs consecutively.

And looking carefully, I noticed that the market has traded towards this support level and has been rejected by the bulls just as expected.

And with this rejection, I can seek to enter the market on a long position but before then, I decided to move to the 2hr timeframe, as it is on this timeframe that i take my into the market.

On the 2hr timeframe, I was able to spot a key level which I expect the market to trade towards.

With this, my bullish bias of the market becomes strengthened and I decided to add the rsi indicator into the market to search for trading confluence.

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CONCLUSION

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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.

To continue this section of my analysis, I added the rsi to the monthly timeframe, and on this timeframe, I could see that the rsi has crossed below it's 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, 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.

And moving to the daily 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 bullish trend reversal, and as such we can expect to see a bullish move on the market.

This is in alliance with my analysis using support and resistance strategy, and as such, I decided to move to the 2hr timeframe to search for entry into the market.

Getting to the 2hr timeframe, I also noticed that the market is being oversold, and this is an indication that the market is about to go bullish, that is a bullish trend reversal of the market.

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