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..
ANALYSIS USING SUPPORT AND RESISTANCE STRATEGY
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 moving to the 4hr timeframe, I could see the market more clearly, and I was able to identify another key level which is the resistance level to the price chart.
And we can see a rejection of the market from this level, and as such, we can expect to see the market trade towards its support level, and when this happens, we can take a buy on the market.
And from the above screenshot, we can see the market has traded towards its support level, and as it gets to this level, we can see the formation of a few bullish candles, which shows the rejection of the market from that level
And then I decided to search for trading confluence using the relative strength index indicator.
CONFLUENCE USING RELATIVE STRENGTH INDEX INDICATOR
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 oversold and an oversold market is detected when the rsi trades below its 20% line.
And an oversold market is understood to be a bullish trend reversal of the market, that is a change in market strength from the sellers to the buyers.
And moving to the daily timeframe, i could also see that the market is being overbought as an overbought market signals a bearish trend reversal, that is, a change in market strength from the buyers to the sellers.
An oversold market can also be understood to mean the weakness of the bears and the strength of the bulls in the market.
And moving to the 2hr timeframe, 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.