Topdown Analysis Of DYDXUSDT Using Support And Resistance Strategy And RSI Indicator As A Confluence

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Hello great minds,

I feel excited to come before you all this evening to relate with you on another interesting post in the community.

I trust you are all doing perfectly fine and are enjoying your activities in the community as you actively promote steemit across various social media platform.

Today I will be sharing my analysis on dydxusdt just as I used to in the community, please stay tuned.

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ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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Dydx is a good token in the cryptospace which is one reason I have chosen it for my analysis today.

And I will be sharing the latest price movement as at when this post was made.

I decided to begin my analysis on the monthly timeframe just as seen above.

And on this timeframe, we can see that there are less candles on the price chart, which indicates the presence of buyers and sellers in the market.

And also, the monthly timeframe helps to filter out noise from the market as each candle is formed within the time period of 1month.

Also on this timeframe, it is very easy for the market overall trend to be detected, and from the screenshot above, we can see that the market is being bearish overall.

I then continued my analysis on the weekly timeframe, and on this timeframe, I could see more market candlestick, as each candle was formed within the time period of 1 week.

And on this timeframe, I was able to spot a key level and this level is functioning as a support level to the market price.

On this level, there are much buyers than sellers and whenever the market trades towards this level, we expect to see the effect of buying pressure on the market.

To get more information on the market, I continued my analysis on the daily timeframe.

On this timeframe, there are more candlestick as the buyers and sellers are present in the market, showing their strength.

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

On this level, there are more sellers than buyers and when the market trades to this level, we expect to see a sell on the market.

And continuing on the 4hr timeframe, I could see how noisy the market is, as the buyers and sellers are struggling to show their strength in the market.

And from the above screenshot, I could see that the market has traded toward this support level, and on this level their are much buyers than sellers on the market.

As the market approaches this level, I expect to see a change in market structure from bearish to bullish, and as such, I decided to move to 2hr timeframe to search for entry into the market.

On the 2hr timeframe is where I take my entry into the market.

On this timeframe, my bullish bias of the market has been established and before entering the market, 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 trading tool in the cryptomarket.

The rsi indicator is used to spot oversold and overbought market regions.

And when a market is spotted to be oversold, it is a signal that the market is about to experience a bullish move.

And when a market is spotted to be overbought, it is a signal that the market is about to experience a bearish move.

I then decided to apply the rsi to the monthly timeframe, and on this timeframe I could see that the rsi line has crossed below its 20% line.

And this is an indication that the market is being oversold and an oversold market is one that signals a bulllish trend reversal signal.

It is a market condition that shows the change in market strength from the sellers to the buyers, and as such we expect to see a bullish move of the market.

I then continued my analysis by adding the rsi to the daily timeframe, and on this timeframe, I could see that the rsi has crossed below the 20% line.

And this signals that the market is being oversold, and an oversold market is seen as a bullish trend reversal signal.

With this analysis, we expect to see a bullish move of the market, as the buyers have become strengthened on this timeframe.

I then moved to the 2hr timeframe to search for entry into the market.

On this timeframe I could see that the rsi has crossed below its 20% line, and this is a bullish trend reversal signal.

And with this, I decided to place my entry on the closest support level to the market and my take profit was placed on the market closest resistance level, just as seen above.

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CONCLUSION

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Dydx is actually a very good token but before investing in it, I'll advise that you make your personal research about it.

My post was made for educational purpose and not as a financial advice.