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 to the weekly timeframe and on this timeframe I could see the market more clearly, I could see the formation of more candles and this is because each candle on this timeframe takes a period of 7days to be completely formed.

And looking carefully, 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.

And looking carefully at the market, I could see the validity of this level, as it has been severally tested and respected by the market.

And moving to the daily timeframe, I could see the market more clearly, I could see the formation of several bullish and bearish candles which indicates the presence 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 be rejected when it trades towards this support level.

And looking at the above screenshot carefully, we would notice that this support level is a valid level, as the market has made several touches on it without being able to break below.

And moving to the 4hr timeframe, I could see lots of noise in the market, as the buyers and sellers struggle to drive the market to their preferred direction.

And from the above screenshot, we can see that the bulls are in control of the market as the market kept creating higher highs and higher lows.

And when the market got towards this resistance level, we can see bearish rejection, after which the market retraced to retest this level again.

From my analysis from the higher timeframe, I expect to see a bearish rejection of the market, I expect to see the bears take control as the market has traded towards its resistance level.

And as such, I was able to identify a level which I expect the market to trade towards, and then it may continue it's bulllish move.

And before entering the trade, 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 overbought, and an overbought market is signaled when the rsi crosses above its 80% line.

And an overbought market is understood to be a bearish trend reversal of the market, that is, a change in market strength from the buyers to the sellers.

And then I decided to continue to the daily timeframe for more analysis.

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

It is a market condition that tells the weakness of the bulls to continue in power and it shows the strength of the bears as they are about to take control of the market.

And getting to the 2hr timeframe with my bearish bias of the market, I decided to search for bearish entry into the market.

And from the screenshot above, we can see that I placed the entry on the market closest resistance level and my take profit was placed on the market closest support level.

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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