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.

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 as each candle on this timeframe takes a trading 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 as there are lots of sellers on this level than buyers.

And from the screenshot above, I can see that this level has been previously respected by the market and we can expect it to be respected again by the market.

And moving to the daily timeframe, I could see the market more clearly, I could see several bullish and bearish candles which indicates that both buyers and sellers are active in the market.

And looking carefully, I was able to spot another key level and this level is functioning as a support level to the market price, and we can expect the market to be rejected whenever it trades towards this level.

And from the above screenshot, we can see that the market has made several touches on this level and it has been unable to break below it, which shows the strength of the buyers in the market.

And getting 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 looking carefully, I could see that the sellers are in control of the market as the market kept forming lower lows and lower highs until it traded towards its support level.

And from there, we can see rejection from this support level as it has began to create to levels, then I decided to move to the 2hr timeframe in search of an entry.

And with these analysis, my bullish bias of the market got strengthened and I decided to search for bullish entries into the market.

Then I was able to spot a level I expect the market to trade towards and this level is going to function as my take profit level.

And then 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 added the rsi to the monthly timeframe and on this timeframe I could see that the market is being oversold and an oversold market is understood to mean a bullish trend reversal of the market.

An oversold market can be identified when the rsi crosses below its 20% line and this can indicate a change in market strength from the bears to the bulls, and this is in confluence with my analysis using support and resistance strategy.

I then decided to move to the daily timeframe and on this timeframe, I realised that the market is being oversold and an oversold market signals a bulllish trend reversal.

And this shows the weakness of the bears when compared to the bulls and this means, we can expect the formation of several bullish candles.

And moving to the 2hr timeframe, I could see the market more clearly, and I could see that the market is being oversold.

And then I decided to place my bullish entry on the closest support level to the market and my take profit was placed on the closest resistance level to the market price.

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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