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.

Getting to the weekly timeframe, I noticed that their are more candlestick here than on the monthly timeframe.

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

And looking carefully, I noticed that the most recent bearish move of the market was as a result of its rejection from this resistance level.

And then I moved to the daily timeframe for more market analysis.

Getting to the daily timeframe, I could see the market more clearly, I could see the market forming series of lower lows and lower highs as it approaches it's support level.

And looking carefully, I identified that support level and it is a valid support level because the market has made several touches on it and has been unable to break below.

And when the market trades towards it as it has done now, we can expect to be bullish on the market as there will be formation of several bullish candles.

Getting to the 4hr timeframe, I realised that the market has traded towards its support level and has been rejected by this level.

Looking carefully, we can see the formation of green candles which is the presence of the bulls in the market, and then, we can expect to see the mark's continue on a bullish move.

With this, I decided to continue my analysis on the 2hr timeframe inorder to get more information out of the market, and then to search for my entry into the market.

Getting to the 2hr timeframe, I could see the several formation of bullish candles on the market and as such, I decided to search for a level that will function as my take profit region.

And looking carefully, I was able to spot the previous high created by the market and I expect the market to trade towards this high.

And before entering the market, I decided to search for my entry using 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.

I then decided to add my rsi to the monthly timeframe, and on this timeframe I could see that the market is being oversold and this is because its rsi has crossed below its 20% line.

And whenever the rsi crosses below its 20% line, the market signals a bullish trend reversal, the weakness of the bears and the strength of the bulls.

And this is in alliance with my analysis using support and resistance strategy.

Applying the rsi to the daily timeframe, I could see the same signal.

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 understood to mean a bullish trend reversal, just as I have explained earlier, and as such, I moved to the 2hr timeframe for my entry.

On the 2hr timeframe, I decided to search for an entry into the market and here, I placed my entry on the closest support level to the market.

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.