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

Source

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 I could see the market more clearly, I could see more candles on this timeframe than on the higher timeframe and this is because each candle here is being formed within the time period of 7days.

And looking carefully on this timeframe, I was able to identify a key level and this level is functioning as a resistance level to the market price, and it is expected for the market to be rejected whenever it trades towards this level .

And from the above screenshot, we can see that the most recent bearish move from the market was as a result of rejection from this resistance level.

Getting to the daily timeframe, I could see more activities on the market, I could feel the presence of the buyers and sellers as they struggle to drive the market to their preferred direction.

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

And from the above screenshot, we can see that the market has traded towards this support level and we can see the formation of few bullish candles which can serve as a sign of market rejection, but this will be properly seen on the 4hr timeframe below.

And getting to the 4hr timeframe, I could see the market more clearly, I could feel the pressure from the bears as they pulled the market towards its support level.

Upon getting to its support level, I realized that the market was being rejected by the buyers as there are much buying pressure on that level.

From the above screenshot, we can see the formation of several bullish candles as the market touched this support level, and then, I decided to move to the 2hr timeframe for entry into the market.

On the 2hr timeframe, I could see more noise on the market than other timeframes.

And on this timeframe, my bullish bias of the market was developed and I spotted out a key level which I expect the market to take out, and this level will be functioning as my take profit level.

And as such, I decided to search for my entry using a confluence trade from relative strength index 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.

Applying the rsi to the monthly timeframe, I realised that the market is being oversold as it has traded towards its 20% line.

And an oversold market is one that is understood to mean a bullish trend reversal signal, that is, a change in market strength from the bears to the bulls.

And this is in alliance with my analysis using support and resistance strategy and as such, I decided to move to the daily timeframe for more confluence.

On the daily timeframe, I noticed that the market is being overbought, and this is because its rsi has crossed above its 80% line.

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

And with this, I decided to search for my entry on the 2hr timeframe.

Getting to the 2hr timeframe, I noticed that the market was being oversold and personally, I was expecting to see a minor bearish retracement of the market into my support level.

And with this confluence, I decided to place my entry on the closest support level to the market and my take profit was placed on the level I marked earlier.

---

---

CONCLUSION

---

---

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