Steemit Crypto Academy Contest / S14W4 - Fibonacci Retracements

Hey everyone!

This week we are diving into something cool in the trading world Fibonacci Retracements. Its like a super helpful tool that gives us clues about where the market might go Kind of like treasure map for traders!

Imagine you are in a video game and you have this special item that shows you Secret paths and hidden treasures. Well in trading Fibonacci Retracements are a bit like that. They help us figure out where the prices might bounce back (support) or hit a roadblock (resistance). Understanding this tool is like having a cheat code for Making smarter decisions in the market.

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In the next few posts I am going to break down this Fancy tool Show you how it works and share my thoughts on what it tells us when we look at specific charts. So buckle up join me in this adventure and lets see if We can uncover some market secrets together

Imagine you are on a treasure hunt in a video game and you have got this special tool that shows you three key spots on your map: 38.2% 50% and 61.8%. These spots are like checkpoints Where the market might take breather or change its course after a big adventure just like when you find cool area in the game to rest and plan your next moves.

draw in

Now these percentages come from a special number sequence called Fibonacci Where each number is the sum of the two before it (0 1 1 2 3 5 and so on). Traders use these percentages to predict where prices might bounce back or slow down. the 38.2% is like a moderate break 50% is a bit more significant and 61.8% is a deeper pause.

So after prices make big move we look at our treasure map (the chart) and see if it aligns with these special spots. If it does its like finding a hidden treasure chest the market might do something interesting there! Traders use these retracement levels to make smart decisions about When to join the adventure (enter a trade) or take break (exit a trade).

In simpler terms Fibonacci Retracements act like a secret code in the trading world helping traders find sweet spots on the chart where they can make well-informed decisions. It's a bit like having a cheat code for success in the trading game!

Imagine you are on a treasure hunt in a Video game and you have got this special tool that show you three key spots on your map: 38.2% 50% and 61.8%. These spots are like checkpoints Where the market might take breather or change its Course after big adventure just like when you find cool area in the game to rest and Plan your next moves.

Now these percentages come from special number sequence called Fibonacci where each number is the sum of the two before it (0 1 1 2 3 5 and so on). Trader use these percentages to predict where prices might bounce back or slow down. the 38.2% is like a moderate break 50% is a bit more significant and 61.8% is deeper Pause.

So after prices make big move we look at our treasure map (the chart) and see if it aligns with these Special spots. If it does its like finding hidden treasure chest the market might do something interesting there! Traders use these retracement levels to make smart Decisions about When to join the adventure (enter a trade) or take break (exit a trade).

In simpler terms Fibonacci Retracements act like a secret code in the trading world helping traders find sweet spots on the chart where they can make well-informed decisions. Its a bit like having a cheat code for success in the trading game!

Applying Fibonacci Retracements to STEEM/USDT Chart

Sure lets analyze the STEEM/USDT chart and see how Fibonacci retracement levels play out:

1. Choosing Swing Points:

First we need to identify Key swing points on the Chart. These points mark significant high and lows from which to draw the retracement Levels. For this example let consider the recent downward trend of STEEM/USDT:

• High: 0.4040 (marked as point A)
• Low: 0.1682 (marked as point B)

2. Drawing Retracement Levels:

With the swing points defined we can use the Fibonacci retracement tool on the chart. This will automatically calculate and draw the key retracement level (23.6% 38.2% 50% 61.8% and 78.6%) based on the selected swing point:

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3. Interpretation and Potential Trade Signals:

Now lets analyze how price interacts with these retracement levels:

• 38.2% retracement (0.2255): Price briefly touched this level but continued its downward trend. This could indicate weak support at this level.
• 50% retracement (0.2861): Price found some significant resistance around this level potentially suggesting indecision in the market.
• 61.8% retracement (0.3467): A strong rejection occurred at this level prompting a further decline in price. This could be interpreted as a bearish signal suggesting sellers regained control and pushed the price lower.

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