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

Source

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 by moving to the weekly timeframe.

On this timeframe, I could see more market activities, I could see more candles as each candle was formed within the period of 1week.

Also on 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 for the market to be rejected whenever the price trades to this level.

I then continued my analysis by moving to the daily timeframe, and on this timeframe, there are more market activities than on the weekly timeframe.

Also on this timeframe, I was able to spot another key level which will be functioning as a resistance level to the price chart.

This level is believed to be a valid level as it has severally been respected by the market price.

And as seen above, the latest bearish move from the market was as a result of rejection from this resistance level.

Moving to the 4hr timeframe, I could see lots of noise in the market, I could see the struggle between buyers and sellers as they strive to drive the market price to their preferred direction.

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

And from the above screenshot, we can see that the market has made several touches on this level and has not been able to break above this level.

Then I continued my analysis by moving to the 2hr timeframe, as it is on this timeframe that I take my entry.

Moving to the 2hr timeframe, I could see the market more clearly.

I could see the bulls and bears activities on the market and this gave me a bearish bias on the pair dogeusdt.

And also, I expect the market to retrace to the resistance level above before I enter a sell order and before doing that, I decided to make use of the rsi indicator as a confluence to my trade.

---

---

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.

Then I began by adding the rsi to the monthly timeframe, and on this timeframe, I could see the that the rsi has crossed above its 80% line, and this is an indication that the market is being overbought.

An overbought market is one that signals a bearish trend reversal, that is, the market is expected to experience a bearish move.

And this signal is an alliance with my analysis using support and resistance strategy.

Moving to the daily timeframe, I also noticed that the market is being overbought as it has not gotten below its 50% line.

And as I earlier said, an overbought market is one that signals a bearish trend reversal, and this is in alliance with my analysis using support and resistance strategy.

Then I decided to search for entry on the 2hr timeframe.

On the 2hr timeframe, I noticed that the market is being oversold, and this is an indication that the market will experience a momentary bullish outlook.

And as such, I placed a sell order at the closest resistance level to the market, as I expect the market to retrace to this level.

And my take profit was placed on the closest support level to the market price.

---

---

CONCLUSION

---

---

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.