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.

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

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

On this level, there are more sellers than buyers and it is expected for the market to be rejected when it trades towards this level.

On the daily timeframe, I could see the market activities more clearly, as this timeframe has more information than the weekly timeframe.

Looking at this timeframe, I could feel the presence of the buyers and sellers as they struggle to drive price to their preferred direction.

And from the above screenshot, we can see that the sellers are taking the lead in the market but it was necessary for me to identify the closest resistance level to the market before continuing my analysis.

Then I decided to continue my analysis on the 4hr timeframe, this timeframe is very important to most traders as it reveals so many information about the market.

On this timeframe, I could see the market price more clearly, I could see the strength of the sellers as they drive the market downwards.

On this 4hr timeframe, I noticed a level that the market was finding difficult to break below, the market has made several touches on this level but have been unable to break below.

And as such I marked this level to be my support level, and on this level, there are more buyers than sellers which is why the market has been unable to break below.

With this analysis, my bullish bias of the market became strengthened, as I can see rejection candles from the support level.

I then marked out the closest resistance level to the market which will likely be my take profit level, but 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 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.

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

An overbought market is understood to be a bearish trend reversal signal, that is a change in market strength from buyers to sellers.

And moving to the daily timeframe, I noticed that the rsi has crossed below its 20% line, which is an indication that the market is being oversold.

An oversold market is one understood to be a bullish trend reversal signal, showing the weakness of the bears and the strength of the bulls in the market.

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

And I continued by coming to the 2hr timeframe in search of entry into the market.

On this timeframe, I placed my entry on the closest support level to the market, since I have a bullish bias toward the market.

And my take profit position was placed on the market closest resistance level, just as seen on the screenshot 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