Topdown Analysis Of DOGEUSDT Using Support And Resistance Strategy And RSI Indicator As A Confluence

jueco (77)modquality controllerin Steem Alliance • last year

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 we can see, there are few candles on this timeframe.

The candles are few because if takes a period of 1month for it to be completely formed.

And also , we can see that there are lesser noise in the market and this has made it possible for the market trend to be easily detected.

From the monthly and weekly timeframe, we can see that the market is being bearish overall.

However, its most recent leg is being bullish, forming higher highs and higher lows consecutively.

And on this timeframe, I was able to detect a key level which is to act as a resistance level, and whenever the market gets to this level, it is expected to be rejected to the downside.

Then I moved to the daily timeframe for more market analysis, and on this timeframe, I noticed that there are more noise in the market than in other timeframes.

On this timeframe, I was able to detect another key level which used to serve as a resistance level but has recently being broken, and is now serving as a support level.

It is expected that after the breakout, there should be a retest of the broken level, let's confirm this on the 4hr timeframe.

On the 4hr timeframe, I noticed that the a retest and rejection has occurred already, and the market has continued on its bullish move.

This has given be a bullish bias toward the market, and I eagerly search for ways to join the bullish move of the market.

I then move to the 2hr timeframe to search for a good entry into the market.

Moving to the 2hr timeframe, I noticed another level which is very likely to give a noticeable reaction to the market price.

This level formerly acted as a resistance level but has recently been broken, that is, it is now functioning as a support level.

And the market has retraced to retest this broken level, afterwhich we expect to see a bullish rejection to the upside.

And before joining this trade, I decided to search for confluence using rsi indicator.

CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR

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.

The above screenshot is that of Dogeusdt on the monthly timeframe.

And from the screenshot above, we can see that the market is being overbought, as it's rsi has crossed above the 80% line.

And an overbought market is said to give a bearish trend reversal signal, and then I decided to move to the lower timeframe.

Moving to the daily timeframe, I also noticed that the market is being overbought and this is a bearish trend reversal signal.

As seen above, the rsi has crossed above the 80% line, And this can be seen as a bearish trend reversal signal.

Moving to the 2hr timeframe, I noticed that the rsi is below the 20% line and this is a bullish trend reversal signal.

This shows that the market is being oversold and this is in alliance with our strategy using support and resistance.

And as such, I decided to enter the trade from it's closest support level, and I placed my take profit on the closest resistance level to market price.