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.

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

Looking carefully, I was able to spot a key level and this level is functioning as a resistance level to the market price, and it is expected for the market to be rejected when it trades towards this level.

On this level, there are more market sellers than buyers and as such, whenever the market trades towards this level, we expect to see a rejection, and this is as a result of the selling pressure.

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

I could feel the presence of the buyers and sellers as they struggle to drive the market to their preferred direction.

And as seen from the above screenshot, I was able to identify a key level, and this level use to function as a strong support level before it was broken by the market, and now it's functioning as a resistance level to the market.

I then continued my analysis by moving to the 4hr timeframe, and on this timeframe, I could see the market more clearly.

I noticed that the market has retraced to retest this broken level, and with this I can take a sell off the market when I see the formation of bearish rejection candles.

And looking carefully, I was able to refine this broken support level, and when the market trades towards it, I can patiently anticipate the formation of bearish candle, which will act my entry criteria.

The structure of the market has given me a bearish bias of the market, and I proceeded to spot out another level, which will be acting as my take profit level.

And before entering the market, I decided to search for a trading 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.

Adding the rsi to the monthly timeframe, I noticed that the rsi is moving from its 80% region to its 20% region, and when this happens, we can say the market is being oversold.

And an oversold market 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 with this, we can expect to see a momentary bullish retracement of the market

And getting to the daily timeframe, I could see clearly that the rsi has crossed below its 20% line.

And as a result, we can say that the market is being oversold and an oversold market signals a bulllish trend reversal of the market.

And this is In alliance with my analysis using support and resistance strategy, and I proceeded to the 2hr timeframe in search of entries into the market.

And getting to the 2hr timeframe, I noticed that the market was still oversold, and this is an indication of a bullish trend reversal market.

I then proceeded to place 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