Topdown Analysis Of TRXUSDT Using Support And Resistance Strategy

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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.

And moving to the weekly timeframe, I could see the market more clearly, I could see more candlestick which is because this timeframe is lower than the monthly.

On this timeframe, I could see the market forming bullish and bearish candles and I was able to spot a key level and this level is functioning as a resistance level to the market price.

This is the highest level the market traded towards and now we expect the market to be rejected when it trades towards this level again.

I then decided to move this the daily timeframe and on this timeframe there are lots of noise in the market.

And looking very carefully, I was able to identify another key level and this level will be functioning as a support level to the market and the market is expected to be rejected whenever it trades towards this level again as there are lots of sellers on this level.

The validity of this level can be confirmed from the above screenshot after the market made several touches on it and was unable to break below it.

And getting to the 4hr 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 with this, I was able to spot another level and this level is functioning as a resistance level to the market price, and as seen from the screenshot above, the most recent bullish move of this market was as a result of its rejection from this level.

And getting to the 2hr timeframe, I could see the market very clearly and my bullish bias towards the market has been developed.

I then decided to search for my entry into the market but before doing that, I decided to search for trading 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 often detected when the rsi crosses above its 80% region.

And when this happens, the market is understood to give a bearish trend reversal signal, which indicates the the bears have become stronger and the bulls are becoming weak.

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

And when this happens, we can say that sellers are gaining control over the market and we can expect to see some bearish movement in market price.

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

And getting to the 2hr timeframe, I could see that the market has been rejected off this support level and I expect to see it retrace before continuing on its bullish move.

And as such, I decided to place my entry on the closest support level to the market and my take profit was placed on the market closest resistance level, just as seen above.

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CONCLUSION

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I have shared my personal analysis of trxusdt, and from my analysis, I expect to see a momentarily retracement to the upside then a bearish move.

This post of mine was not created as a financial advise but for educational purpose