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.

ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY
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.

Getting to the weekly timeframe to continue my analysis, I noticed that there are more candlestick on this timeframe than on the monthly timeframe.

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

And it is expected for the market to be rejected when it trades towards this level, as there are more sellers than buyers on this level.

I then moved to the daily timeframe and on this timeframe I could see the activities of the buyers and sellers as they strive to push price to their preferred direction.

On this timeframe, I was able to spot another key level, and this level is functioning as a resistance level to the price chart.

And as expected, when the market gets to this resistance level, there should be a rejection from the level.
And from the above screenshot, we can see that the market is approaching this resistance level.

On the 4hr timeframe, I could see series of market activities and noise, and this price movements are more likely as a result of market manipulation.

Regardless of the noise in the market, I was able to identify a key level and this level will be functioning as a support level to the market price.

This level can be said to be a valid level as it has been tested severally by the market, and the market has found it difficult to break below this level.

Getting to the 2hr timeframe, I could see the market more clearly.

And with my bullish bias of the market, I decided to search for confluence using the rsi 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 approached it's 80% line and this is an indication that the market is being overbought.

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

Then I continued on the daily timeframe for more market analysis

On the daily timeframe, I could see the rsi indicator has it is gradually approaching the 20% line.

When it gets to the 20% line, we can say that the market is being oversold, and an oversold market is seen to be a bullish trend reversal signal.

A change in market strength from sellers to buyers.

Getting to the 2hr timeframe, the timeframe in which I take my entry into the market, I noticed that the market was being overbought as the rsi has gotten to its 80% level.

And according to my analysis, I expect to see the market retrace to its support level before continuing it's bullish move.

With that, I placed my buy order 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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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.