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.

And to continue my analysis, I decided to move 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.

And looking carefully, I was able to identify another 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 when it trades towards this level.

And from the above screenshot, we can see this resistance level is responsible for the most recent bearish move on this timeframe.

And moving to the daily timeframe I could see the market more clearly, I could see more candles on this timeframe as it takes 24hrs for each candle on this timeframe to be formed.

And looking carefully, I detected another level and this level is functioning as a support level to the market and the market is expected to be rejected whenever it trades towards this level.

And from this, I can see that this support level is a valid level as it has been severally respected by the market.

Getting to the 4hr timeframe, I could see the market more clearly, I could feel the presence of buyers and sellers as they struggle to drive the market to their preferred direction.

And from the above screenshot, I can see that the market is being bearish as it forms consecutive lower lows and lower highs, and I can see a change in structure as the as the market approached this support level and got rejected.

And I then decided to continue my analysis on the 2hr timeframe as it is on this timeframe that I search for my entry into the market.

And getting to the 2hr timeframe, I decided to search for my entry and take profit level.

And looking carefully, I was able to identify a key level which will be functioning as my take profit level on the market.

And with my bullish bias, 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.

Applying the rsi to the monthly timeframe I could see that the market is being oversold, and an oversold market can be detected when the rsi crosses below its 20% line.

An oversold market signals a bulllish trend reversal, that is a change in market strength from the sellers to the buyers.

And as such, I decided to move to the daily timeframe for more confluence.

And moving to the daily timeframe, I realised that the market is being oversold and an overbought market signals a bearish trend reversal.

That is, we can expect to see a change in market strength from the buyers to the sellers and then I decided to move to the 2hr timeframe in search of entry into the market.

And getting to the 2hr timeframe,I was able to identify my entry level.

I decided to place my entry on the closest support level to the market and my take profit was placed on the market closest support level.

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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