Technical Analysis on DOGEUSDT: Capturing a 36.01% ROI with a Long Trade

Technical Analysis on DOGEUSDT: Capturing a 36.01% ROI with a Long Trade

Today, I closed a successful DOGEUSDT long trade on Bybit with a 36.01% ROI. This post breaks down the entry and exit points, along with the technical analysis that led to this profitable trade.

Trade Summary

• Instrument: DOGEUSDT
• Position: LONG
• Entry Price: 0.40848
• Exit Price: 0.42319
• P&L: +36.01%

Technical Analysis: Why I Entered the Long Trade

Upon analyzing DOGEUSDT, I identified several technical signals that suggested an upward movement was likely:

1. Support Level at $0.408:
   DOGEUSDT had recently tested the $0.408 level, a key support zone where buying interest had shown strength in the past. This area acted as a strong foundation for a potential upward movement, providing a solid entry point for a long trade.

2. Bullish RSI Divergence:
   On the 1-hour chart, the Relative Strength Index (RSI) exhibited bullish divergence, where the RSI showed higher lows while the price formed lower lows. This divergence is often a signal of an upcoming reversal to the upside, increasing the probability of a successful long trade.

3. Reversal Candlestick Pattern:
   A bullish reversal pattern appeared on the 15-minute chart just before my entry, showing increased buying momentum. This pattern confirmed that buyers were stepping in at the support level, aligning with the bullish signals from the RSI and support level analysis.

Exit Strategy: Securing Profits at $0.42319

After entering at $0.40848, I aimed to capture gains by setting an exit around $0.42319. Here’s why I chose this level:

1. Resistance at $0.423:
   The $0.423 level acted as a minor resistance zone. By exiting just below this level, I was able to lock in gains without risking a reversal near this resistance.

2. Volume Confirmation:
   As DOGEUSDT approached $0.423, trading volume began to taper off, signaling that buying momentum might be weakening. This observation helped me decide to close the trade at the planned target, ensuring I captured profits before any potential pullback.

Key Takeaways from the Trade

This trade illustrated the importance of using support levels, bullish RSI divergence, and candlestick patterns to time entries and exits effectively. By combining these technical indicators, I was able to capture a 36.01% ROI on this long setup.

I’ll continue to monitor DOGEUSDT for further opportunities, applying the same technical principles to manage risk and optimize entries and exits. Understanding these patterns and signals allows us to make informed decisions and capitalize on market movements.

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