Technical Analysis on DOGEUSDT: Capturing a 47.81% ROI with a Long Trade
Technical Analysis on DOGEUSDT: Capturing a 47.81% ROI with a Long Trade
Yesterday, I closed a profitable DOGEUSDT long trade on Bybit with a 47.81% ROI. Here’s a breakdown of my entry and exit points and the technical analysis that led to this successful trade.
Trade Summary
- Instrument: DOGEUSDT
- Position: LONG
- Entry Price: 0.38569
- Exit Price: 0.40413
- P&L: +47.81%
Technical Analysis: Why I Entered the Long Trade
When analyzing DOGEUSDT, I noticed several indicators pointing to a bullish movement. Here’s what made this trade setup compelling:
Key Support at $0.385:
DOGEUSDT had established a support level around $0.385, where buyers had previously shown interest. This level acted as a strong base for a potential price increase, giving me a solid entry point with minimal downside risk.Oversold RSI on the 4-Hour Chart:
The Relative Strength Index (RSI) on the 4-hour chart was in oversold territory, below 30. This often indicates selling exhaustion, and as RSI started climbing back up, it signaled a likely reversal, aligning well with the support level.Bullish Candlestick Reversal Pattern:
On the 15-minute chart, a bullish engulfing pattern appeared at the support level, showing renewed buying interest. This pattern confirmed the potential for a bullish reversal, increasing my confidence in a long position.
Exit Strategy: Locking in Profits at $0.40413
After entering at $0.38569, I set a target exit near $0.40413 to capture gains before hitting resistance. Here’s the reasoning behind this exit level:
Resistance at $0.405:
The $0.405 level had previously acted as minor resistance, where price action often faced selling pressure. Exiting slightly below this level allowed me to secure profits without risking a reversal.Volume Decrease:
As DOGEUSDT approached $0.404, trading volume began to decline, suggesting that bullish momentum was fading. This observation supported my decision to exit and lock in gains.
Key Takeaways from the Trade
This trade demonstrated the value of using support levels, RSI oversold signals, and candlestick reversal patterns to time entries and exits effectively. By combining these technical indicators, I achieved a 47.81% ROI on this setup.
As DOGEUSDT continues to develop, I’ll be watching for further opportunities that align with these indicators, helping me manage risk and maximize returns.
Stay tuned for more trading insights and technical analysis as we continue tracking opportunities in the crypto market!