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.
And moving to the weekly timeframe I could see the market more clearly, I could see more candles on this timeframe as each candle is formed within the trading period of 7days.
And looking very carefully, I was able to identify a key level and this level is functioning as a resistance level to the market, and the market is expected to be rejected whenever it trades towards this level.
And also, I could see that the market has made several touches on this level which shows the validity of the level in the market.
And getting to the daily timeframe, I could see the market more clearly, I could see several bullish and bearish candles in the market as they signify the presence of 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, and from the above screenshot, we can see that the market has made several touches on this support level and has been unable to break below it.
And from the above screenshot, we can see several rejection candles as the market traded towards its support level.
And moving to the 4hr timeframe, I could see lots of noise and manipulation in the market, as the buyers and sellers struggle to drive the market to their preferred direction.
And from the screenshot above, I noticed that the market kept forming lower lows and lower highs which indicates that the bears are in control, until it traded towards its support level, and then I began to see bullish rejection candles.
Then I decided to move to the 2hr timeframe in search of entry into the market, as it is on the 2hr timeframe I search for entry into the market.
Getting to the 2hr timeframe I could see lots of noise in the market as the buyers and sellers have become more aggressive at this point.
And then my bullish bias of the market has become strengthened and as such, i spotted a key level and this level will function as my take profit position.
And then I decided to search for trading confluence using the 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.
I then applied the rsi indicator to the monthly timeframe and on this timeframe I could see that the market is being overbought as an overbought market can be detected when the rsi crosses above its 80% line.
And an overbought market often signals 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 my analysis on the daily timeframe for more confluence to my trading.
And moving to the daily timeframe, I could see that the market is being overbought, as it has crossed above its 80% line, and this is an indication that the market is about to experience a bearish trend reversal.
An overbought market is often accompanied by a sell in the market which is characterized by the formation of several bearish candles in the market.
And then I decided to move to the 2hr timeframe in search of entry into the market.
And getting to the 2hr timeframe with my bullish bias of the market, I decided to search for the closest support level to the market, and it is on this level that I placed my entry on the market.
And then my take profit position was placed on the closest resistance level to the market just as seen above.
CONCLUSIONS
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
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