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 moved to the weekly timeframe to continue my analysis, and on this timeframe, I could see more market activities than on the monthly timeframe.

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

And it is expected that when the market gets to this level, it should be rejected by the this level, and as such, I continued on the daily timeframe for more market details.

Getting to the daily timeframe, I could see more candlestick than on the weekly timeframe, and this indicates the presence of numerous buyers and sellers in the market.

Looking carefully at this timeframe, I was able to spot another key level, and this level will be functioning as a resistance level to the price chart.

And as seen above, the market is moving toward this level and it is expected for the market to be rejected immediately it gets to this level.

Inorder to make a good trading decision, I then decided to continue my analysis on the 4hr timeframe

On this timeframe, I could see so much market noise, as the buyers and sellers struggle to push price to their preferred direction.

Also, I was able to spot another level which has been severally respected by market price, and this level has just been recently broken by the market.

I thus expect to see a retest to this broken level and a rejection to the upside.

Getting to the 2hr timeframe, I could see bearish rejections in the market as it moves to retest this broken level.

After retesting this level, I expect to see the market continue on its bullish move but before then, 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 could see that the rsi has crossed above its 80% line.

And this is an indication that the market is being overbought, and an overbought market is expected to be sold.

This implies that we expect to see a bearish trend reversal of the market, that is, the market is expected to experience a momentary bearish move.

Getting to the daily timeframe, I notice that the rsi indicator has crossed above its 80% line, and this is also an indication that the market is being overbought.

With this, we should expect a momentary pullback from the market

On the 4hr timeframe, and we can see clearly that the market is being overbought.

And an overbought market signals a bearish trend reversal of the market, that is, the market is about to go bearish.

And with this, I decided to visit the 2hr timeframe In search of entry into the market.

Getting to the 2hr timeframe, I already got my bullish bias of the market but the market hasn't gotten to the level I intend to enter from.

Then i placed my buy order from the closest support level to the market price and my take profit was placed on the market closest resistance 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.