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.

The weekly timeframe is usually more noisier than the monthly timeframe as it has candlestick formed within the space of 7days.

Looking carefully at this timeframe, I could spot a key level and this level is functioning as a resistance level to the market price.

On this level, there are numerous sellers waiting for the market to trade towards it so they can take their profits off the market.

Then I continued my analysis on the daily timeframe, and on this timeframe, I could see that there are more activities on the market than on the weekly timeframe.

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

On this level, there are more buyers than sellers and their duty is to prevent the price from falling further.

So when the market trades towards this level, the buyers immediately buys and this prevents the market from going downward any further.

To get more market information, I moved to the 4hr timeframe, and on this timeframe, there are lots of noise in the market.

I could also see the buyers and sellers struggling to take control of the market and from the above screenshot, I could see the market forming lower lows and lower highs which indicates the strength of the bears.

Also, I could see the market ranging within this support level as the buyers are gathering momentum to push the market upwards.

And then, I also noticed a resistance level which will serve as a take profit region for buyers in the market.

On this timeframe, I could see the movement of the market price on the resistance level discovered on the 4hr timeframe.

I could see that the market was unable to break above this level, and I expect the market to trade towards this level after being rejected by the support level.

And before taking my entry, 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 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 continued my analysis by adding the rsi to the monthly timeframe, and on this timeframe I could see that the rsi has crossed below its 50% line and is gradually approaching its 20% line.

When the market eventually gets to its 20% line, we can say that the market is being oversold and an oversold market is one that signals a bulllish trend reversal.

And this is in alliance with our analysis using support and resistance strategy.

In search of more confluence, I moved to the daily timeframe and on this timeframe, I noticed that the rsi has traded towards this 20% line.

And as such the market can be said to be oversold and it thus explains that the bulls are about to take control of the market as the bears have become weak to continue their bearish move.

And with this confluence, I decided to move to the 2hr timeframe to take my entry into the market.

On this level, I could see that the market is still being oversold, and as such I took my trade off the 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