Topdown Analysis Of TRXUSDT Using Support And Resistance Strategy And Rsi Indicator As A Confluence

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Hello great minds,

I trust you are all doing perfectly fine and are enjoying activities in the community.

It is a great day and I feel overjoyed to come before you all in this great community today, to share my analysis on trxusdt.

I will be doing a breakdown of topdown analysis of trxusdt beginning from the monthly timeframe, down to the hourly timeframe.

And I will be making use of support and resistance strategy for my analysis, alongside the rsi indicator for trading confluence..

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ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY

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Like I use to tell, my analysis starts from the higher timeframe, down to the lower timeframe.

From the higher timeframe, I search for the overall market trend as this will influence my trading decisions on the lower timeframe.

On the lower timeframe, I search for entries into the market, entries are very important if you are to apply risk management in trading..

Begining my analysis from the monthly timeframe as usual, I can see how neat the price chart is.

There are no noise in the market as every candle on this timeframe is a valid one.

Also, I was able to detect the trend of the market, and from the screenshot above, I wouldn't say the market is on a bearish trend.

We can see that the current market price has broken a new level in the market, and as such we can say that the pair trxusdt is bullish overall.

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

And looking carefully, I was able to identify a key level and this level is functioning as a support level to the price chart and the market is expected to be rejected whenever it trades towards this level.

And from the screenshot above, we can see the validity of this level as the market has made several touches here and have shown significant reactions whenever it trades towards this level.

Then I decided to move to the daily timeframe to continue my analysis, and on this timeframe, I could see the formation of several bullish and bearish candles which shows the presence of buyers and sellers in the market.

And looking carefully I was able to identify another key level and this level is functioning as a resistance level to the price chart, and the market is expected to be rejected whenever it trades towards this level.

And from the screenshot above, we can see the validity of this level as the market made noticeable reactions as it trades towards this level.

I then moved to the 4hr timeframe and on this timeframe I could see lots of noise in the market, as the buyers and sellers struggle to drive the market to their preferred direction.

And from the above screenshot, we can see that the bulls are in control of the market as it has formed series of higher highs and higher lows in the market.

And then we can see that it broke above its resistance level, and we can expect to see a bearish rejection of the market.

And with my bullish bias, I came to the 2hr timeframe, and on this timeframe, I could see the market clearly.

I expect to see the market retrace to its support level and upon the formation of a bullish candle, then I'll take my entry.

And before entering the trade, i decided to search for confluence using the 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.

Applying the rsi to the monthly timeframe, I could see that the market is being overbought and an overbought market is signaled when the rsi crosses above its 80% line.

And an overbought market often signals a bearish trend reversal, that is, a change in market strength from the buyers to the sellers.

And then I decided to move to the daily timeframe to continue my analysis.

And moving to the daily timeframe, I could see that the market is being overbought as it has crossed above its 80% line.

And as earlier said, this signals a bearish trend reversal, that is, a change in market strength from the buyer to the sellers.

And with this bias, I decided to move to the 2hr timeframe in search of entry into the market.

And getting to the 2hr timeframe with my bullish bias, I decided to place my entry on the closest support level to the price chart and my take profit was placed on the closest resistance level to the price chart, just as seen above.