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 on the weekly timeframe, and on this timeframe, I could see more market activities than on the monthly timeframe.

And looking carefully at this timeframe, I was able to spot a key level on the price chart and this level is functioning as a resistance level to the market price.

And it is expected that when the market trades towards this level, it gets rejected to the opposite direction.

Getting to the daily timeframe, I could see more market activities than on the weekly timeframe.

On this timeframe, I could feel the presence of the buyers and sellers as they struggle to dominate the market.

And looking carefully at this timeframe, I was able to spot a key level and this level is functioning as a support level to the market, and it is expected for the market to be rejected to the upward direction when it trades towards this level.

Moving to the 4hr timeframe, I could see lots of market activities, I could see the competition between the buyers and sellers in the market which is resulting to market manipulation.

And from this screenshot, we can see that the market has traded towards this support level of the market, and we can thus expect to see a bullish rejection of the market.

On the 2hr timeframe, I could see the market price more clearly and I could see the struggle between the buyers and sellers in the market.

And from my analysis, I expect to see the market embark on a bulllish move but before entering the market, I decided to search for trading 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.

Starting with the monthly timeframe, I noticed that the rsi has gotten to its 80% line and this is an indication that the market is being overbought.

An overbought market is seen as a bearish trend reversal signal, showing the change in market strength from the bulls to the bears.

Then I continued my analysis on the daily timeframe, as I search for more confluence to my trade.

Getting to the daily timeframe, I notice that the market is being oversold as it has crossed below its 20% line.

And this is often a signal for a bullish trend reversal market, that is , a market condition showing the change in market strength from the sellers to the buyers.

And this is in alliance with my analysis using support and resistance strategy and as such I decided to visit the 2hr timeframe as it is on this timeframe that I take my entry into the market.

Getting to the 2hr timeframe, I noticed that the market was being oversold, and it is an indication that the market is going to be bullish.

And as such, I decided to place a buy order on the market closest support level and my take profit was placed on the closest resistance level just as seen above.

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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.