Topdown Analysis Of TRXUSDT Using Support And Resistance Strategy And Rsi Indicator As A Confluence

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Hello great minds,

I trust you are all doing perfectly fine and are enjoying activities in the community.

It is a great day and I feel overjoyed to come before you all in this great community today, to share my analysis on trxusdt.

I will be doing a breakdown of topdown analysis of trxusdt beginning from the monthly timeframe, down to the hourly timeframe.

And I will be making use of support and resistance strategy for my analysis, alongside the rsi indicator for trading confluence..

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ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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Like I use to tell, my analysis starts from the higher timeframe, down to the lower timeframe.

From the higher timeframe, I search for the overall market trend as this will influence my trading decisions on the lower timeframe.

On the lower timeframe, I search for entries into the market, entries are very important if you are to apply risk management in trading..

Begining my analysis from the monthly timeframe as usual, I can see how neat the price chart is.

There are no noise in the market as every candle on this timeframe is a valid one.

Also, I was able to detect the trend of the market, and from the screenshot above, I wouldn't say the market is on a bearish trend.

We can see that the current market price has broken a new level in the market, and as such we can say that the pair trxusdt is bullish overall.

I then continued my analysis by moving to the weekly timeframe and on this timeframe, I could see the market more clearly, I could see more candles on this timeframe than on the monthly timeframe as it takes a period of 7days for each candle here to be formed.

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

On this resistance level, it is believed that there are lots of sellers who inturn prevent the market from moving above it.

And then I continued my analysis by moving to the daily timeframe and on this timeframe I could see the market more clearly, I could see a series of bullish and bearish candles which indicates the presence of the buyers and sellers in the market.

And looking carefully, I was able to identify another key level and this level is functioning as a support level to the market price, and the market is expected to experience a bullish rejection when it trades towards this level.

And l also noticed that this level is a valid level as the market has made several touches on it and have been unable to break below it.

And getting to the 4hr timeframe, I could see series of noise in the market which indicates the presence of buyers and sellers.

I could feel the pressure from the buyers and sellers as they struggle to drive the market to their preferred direction.

And looking carefully, I spotted another support level on this price chart and I can see this level as a valid one because it has been respected severally by the market.

I then approached the 2hr timeframe in search of my entry and with my bearish bias, I can see the market gradually approaching its resistance level.

I expect to see the market get rejected from this resistance level and upon the rejection, I can take a sell on the market.

And before entering the market, I decided to search for 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 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 applied the rsi on the monthly timeframe in search of a confluence, and I realised that the market is being overbought and an overbought market signals a bearish trend reversal of the market.

An overbought market can be detected when the rsi crosses above its 80% line and this is in alliance with my analysis using support and resistance strategy.

Then I moved to the daily timeframe in search of more confluence

And continuing on the daily timeframe, I realised that the market is being overbought and overbought market signals a bearish trend reversal.

That is, it indicates the change in market strength from the buyers to the sellers, and that implies that we expect to see bearish candles.

And as such, I decided to move to the 2hr timeframe in search of entry.

And moving to the 2hr timeframe with my bearish bias I noticed that the market was approaching this resistance level.

And then I decided to place my entry on this resistance level and my take profit on the closest support level to the market, just as seen above.

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CONCLUSION

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I have shared my personal analysis of trxusdt, and from my analysis, I expect to see a momentarily retracement to the upside then a bearish move.

This post of mine was not created as a financial advise but for educational purpose