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

And looking carefully I was able to identify another key level and this level is functioning as a support level to the price chart, and this level formerly functioned as a resistance level until it got broken by the price chart.

And from the above screenshot, we can see that this level is a valid level, as the market has made several reactions whenever it trades towards this level.

And moving to the daily timeframe, I could see the market more clearly, I could see the formation of several bullish and bearish candles which shows the presence of the buyers and sellers in the market.

And from the above screenshot, I could see the bulls taking full control of the market, as it kept forming higher highs and higher lows.

And I was able to identify another key level, and this is the highest level the market has made from that chart history

And progressing to the 4hr timeframe, I could see lots of noise in the market, I could feel the presence of the buyers and sellers as they struggle to drive the market to their preferred direction.

And from the above screenshot, we can see the market retracing to retest it's broken level, and upon this retest, we can expect to see a bullish continuation move.

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

And getting to the 2hr timeframe with my bearish bias, I could see the market more clearly, and I could see the bears taking the price to retest this broken level.

And looking at the above screenshot clearly, I could see that the market has traded into a bullish orderblock already and I expect to see a bullish rejection, and before then, I decided to search for 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.

Applying the rsi to the monthly timeframe, I realised that the market is being overbought and an overbought market is detected when the rsi trades above its 80% line.

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

And then I moved to the daily timeframe and on this timeframe, I could see the market more clearly, and I could see that the market is being oversold.

And an oversold market can be detected when the rsi crosses below its 20% line, and this indicates the strength of the bulls and the weakness of the bears in the market.

And getting to the 2hr timeframe, I could see that the market has retraced into this broken level and we can expect to the a bullish rejection.

And as such, I decided to place my buy entry on the closest support level to the price chart and my take profit was placed to give a risk to reward ratio of 1:3.