(ENG/ESP) Steemit Crypto Academy Contest / S20W5: Trading with Harmonic Patterns || Trading con patrones armónicos

Introduction

Dear Steemians,

We are thrilled to announce the upcoming competition for the fifth week of Season 20 of the Steemit Engagement Challenge, which will take place from October 7 to October 13, 2024. This week, we will dive into the fascinating world of Harmonic Patterns, a unique aspect of technical analysis that allows traders to identify potential reversal points in the market by using geometric price formations and Fibonacci levels.

The objective of this competition is to challenge your understanding of harmonic patterns and how they can be applied to the Steem/USDT pair to anticipate market reversals and potential price movements. This is a perfect opportunity for both beginners and seasoned traders to showcase their skills in identifying patterns such as the Gartley, Bat, Crab, and Butterfly.

Join us in this exciting challenge, where your ability to analyze complex price formations could earn you valuable rewards and enhance your trading strategies!

---

Background

Harmonic Patterns are advanced trading techniques based on Fibonacci retracement and extension levels. These patterns, which include the Gartley, Bat, Crab, and Butterfly, help traders predict potential reversal zones by studying the relationships between price waves.

The key to using harmonic patterns lies in identifying specific price formations that adhere to precise Fibonacci ratios. When these patterns form, they provide traders with a high-probability setup for entering or exiting a trade, as the market often reverses its direction upon completing the pattern.

In this week's competition, participants will have the chance to analyze Steem price charts, identify harmonic patterns, and explain how they could predict future price reversals. This exercise will not only test your theoretical knowledge but also challenge your practical skills in applying these patterns to real market scenarios.

---

What do we expect from the competition?

• Question 1: Explain the Key Harmonic Patterns

  • Describe the four major harmonic patterns: Gartley, Bat, Crab, and Butterfly. Discuss their specific Fibonacci levels and how each pattern can be used to identify potential reversal zones in the Steem/USDT pair.

• Question 2: Identifying Harmonic Patterns on a Steem Chart

  • Using a historical price chart of Steem/USDT, identify one or more harmonic patterns that have formed. Explain how the pattern adheres to the Fibonacci ratios and predict the potential price movements based on the pattern's completion.

• Question 3: Applying Fibonacci to Harmonic Patterns

  • Demonstrate how Fibonacci retracement and extension levels are used in harmonic pattern analysis. Provide an example of how a harmonic pattern predicted a significant price reversal in the Steem market.

• Question 4: Trading Strategies with Harmonic Patterns

  • Develop a step-by-step trading strategy for the Steem token using harmonic patterns. Outline your entry and exit points based on the completion of a harmonic pattern and explain how you would manage risk throughout the trade.

• Question 5: Current Market Analysis Using Harmonic Patterns

  • Analyze the current market conditions for Steem and apply harmonic patterns to forecast potential future price movements. Explain how these patterns could influence your trading decisions and the accuracy of your predictions.

---

Contest Guidelines

• This fifth week will take place from October 7 to October 13, 2024.

• The article should be at least 500 words. You can write more. Your article must be free of any form of plagiarism.

• Your article title should be Trading Steem with Harmonic Patterns. Add the tag #cryptoacademy-s20w5 and other relevant tags.

Rewards

• SC01 will be reviewing the entire 16 participating communities and teaching teams and upvoting outstanding content. Upvotes are not guaranteed for all articles.

• The top 5 participants will be selected based on their performance and will be eligible for additional rewards and upvotes from SC01/SC02.

---

Conclusion & Perspectives

This competition provides an excellent opportunity to expand your knowledge of Harmonic Patterns and their practical application to the Steem token. By mastering these complex price formations, you can enhance your ability to spot high-probability trading setups and make better-informed decisions in volatile markets.

We look forward to reviewing your analysis and rewarding the top participants for their exceptional work. Best of luck to everyone, and may your patterns lead you to profitable trades!