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.

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.

I then continued my analysis on the weekly timeframe, and on this timeframe, I could see the market more clearly, I could see more market candles as each candle here is being formed within the trading period of 7days.

And I looked at the market more clearly, and 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.

And from the above screenshot, we can see that the most recent bearish leg on the market was formed as a result of rejection from this resistance level.

I then continued my analysis by moving to the daily timeframe and on this timeframe I could see more candles than on the weekly timeframe, and this is because, each candle on this timeframe takes a trading period of 24hrs to be formed.

And looking carefully, I was able to identify another key level and this level is functioning as a support level to the market price.

And from the above screenshot, we can see that this support level is a valid as it has been tested severally by the market and has not been broken.

Getting to the 4hr timeframe, I could see a noisy market, I could feel the presence of the buyers and sellers as they struggle to drive the market to their preferred direction.

And looking carefully, i noticed that the bears have been dominating the bulls in the as the price chart kept forming lower lows and lower highs until it traded towards this support level.

Upon getting to the support level, we can see that the market stopped forming new lows and we can expect to see aeries of highs.

Getting to the 2hr timeframe, I could see the market trading towards its support level again, and I can expect to see a Market reaction once it gets to its support level.

Since I have a bullish bias of the market, I will be looking on to take a buy entry once the market approaches this level.

And then I decided to search for trading confluence using 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 decided to add the rsi to the monthly timeframe and on this timeframe, I could see that market is being oversold, and an oversold market can be detected when the rsi crosses below its 20% line.

An oversold market is understood to be a bullish trend reversal of the market, that is, a market condition where the the bulls are about to take control of the market.

And as such, I decided to move to the daily timeframe for more analysis.

Getting to the daily timeframe, I could see that the market is also being oversold, and we know oversold market to be a market condition signaling a bullish trend reversal.

It can also be understood to be a 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 move to the 2hr timeframe in search of entry into the market.

And getting to the 2hr timeframe, I realised that the market is being oversold and as such, I decided to search for my entry into the market.

I then decided to place my entry on the closest support level to the market and my take profit was placed on the closest resistance level to the market, 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