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.

To get a proper view of the market, I then decided to move to the weekly timeframe, and on this timeframe, I noticed that there are more candles on this timeframe than on the monthly timeframe.

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

And this level can be said to be a valid level because it has previously been respected by the market, and when the market trades towards this level, I expect to see rejection to the downside.

I then continued my analysis on the daily timeframe and on this timeframe, the market is looking noisy, and If one is not careful, one can be tricked by market manipulation.

Looking at the daily timeframe carefully, I was able to spot another important level, and this level is functioning as a support level to the market price.

On this level, there are more buyers than sellers, and as such, when the market trades towards this level, we expect to see the impact of the buyers in the market.

On the daily timeframe, I could see a breakout on this support level but I decided to come to the 4hr timeframe to get a better understanding of the market move.

And on the 4hr timeframe, I could see the market movement more clearly, I could see the breakout the market made on the support level.

And looking carefully at the market, I noticed that the market has retraced to retest this broken support level and this support level, has been turned into a resistance level, and it has rejected the market again, thus leading the market to continue its bearish trend.

And in search of an entry, I moved to the 2hr timeframe, and to get an entry, I decided to find an order block which I can take my trade from.

Since I have a bearish bias of the market, I was able to spot a bearish order block which I'll take my entry from, but before then, I decided to search for a 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.

I then applied the rsi to the monthly timeframe, and on this timeframe, 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 change in market strength from the bears to the bulls, that is , we expect to see a bullish move in the market.

I then decided to add the rsi on the daily timeframe, next.

On the daily timeframe, I also noticed that the rsi has crossed below its 20% line, and this is an indication that the market is being oversold.

An oversold market tells us that the buyers are about to take control of the market and the sellers have become weak in the market.

And this implies that we are to see a bullish move on the market, and as such, I decided to move to the 2hr timeframe in search of entry into the market.

On the 2hr timeframe, I noticed that the market was being overbought, that is, we expect to see a bearish move, and this is in alliance with my analysis using support and resistance strategy.

I then placed my entry on the bearish order block I found, and I placed my take profit in a way that it gives me a risk to reward ratio of 1:3.

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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.