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.

ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY
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.

Getting to the weekly timeframe, I could see more market activities, I could see the struggle between the buyers and sellers as they struggle to drive price to their preferred direction.

On this timeframe also, I was able to spot a key level and this level is functioning as a resistance level to the market level.

And it is expected for the market to be rejected when it trades towards this level as there are more sellers than buyers on this level.

Going a bit lower to the daily timeframe, I could see the market movements more clearly, I could see the struggle between buyers and sellers in the market as usual.

And looking carefully, 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 when it trades towards this level

And looking at the market overall, we can see that this support level is a very valid level as the market has failed to break below this level.

Getting to the 4hr timeframe, I could see more market activities, as each candle on this timeframe is formed during a market period of 4hrs.

And on this timeframe, I could see that the market has traded towards its support level and we can expect to see a bullish rejection candle.

With this analysis, my bullish bias of the market is strengthened and I decided to check on the 2hr timeframe in search of entry.

Getting to the 2hr timeframe, I was able to refine my support level, and as seen above, the market has traded towards this support level.

And there have been formation of bullish rejection candles and it is on this bullish formation that we can take our entry into the market.

And before then, I decided to search for confluence using the rsi 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.

Applying the rsi to the monthly timeframe, I noticed that the rsi has crossed below its 20% line.

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

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

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

And an overbought market is known to be a bearish trend reversal signal, that is, showing the change in market strength from the bulls to the bears.

I then continued by applying the rsi to the 2hr timeframe, and on this timeframe, I noticed that the rsi has crossed below its 20% line.

With this analysis, I proceeded to place my buy order 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.