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I am excited to participate in the "Chartist Analysis" contest. Technical analysis has always intrigued me and delving into chart patterns to predict future price movements is both challenging and rewarding. The focus on trend reversal patterns specifically the shoulder head shoulder and inverted shoulder head shoulder presents a unique opportunity to analyze the STEEM cryptocurrency. In this entry I Will be sharing my insights and opinions on how these Chart patterns can be applied to STEEM offering perspective on potential trend changes and their implications for trader and investors. Lets dive into the exciting world of chartist analysis and explore its relevance in the context of STEEM.

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Chartist Analysis
Chartist analysis is like reading the story of a cryptocurrency past to predict its future. Imagine you have a diary of STEEM prices over time. chartist analysis involves studying this diary to look for patterns and trends. The idea is that history tends to repeat itself so by understanding past patterns we can make educated guesses about what might happen next.

The Importance of Chart Patterns:
Think of chart patterns as clues or signals in the diary. They Show us when something interesting might be happening in the market. Here are some simple ideas to grasp their importance:

1. Finding Trends: Imagine you are on treasure hunt and the map (chart) shows clear path where the treasure (price) is going. Chart patterns help us identify if the price is likely to keep going up (bullish ) down ( bearish) or Stay the same (sideways) .

2. Support and Resistance Levels: Picture the Price of STEEM as a ball bouncing on floor (support) and hitting a ceiling (resistance ). Chart patterns help us identify these important level. When the price hits the floor it might bounce back up. When it hit the ceiling it might struggle to go higher.

3. Reversing Directions: Now think of trend reversal patterns like road signs. If the road has been going up for a while (uptrend) and you see a sign that suggests a turn is coming (shoulder head shoulder pattern) it might mean the price could start going down. The inverted shoulder-head-shoulder pattern is like a U-turn sign indicating the price might go up after being down.

Putting it Together:
Lets say you are looking at the diary of STEEM prices and you notice a pattern that looks like three hills a big one in the middle with two smaller ones on each side. This could be a shoulder head shoulder pattern. If the price breaks below a certain line (neckline) it might mean the price could start going down. On the other hand if you see three valleys a big one in the middle with two smaller ones on each side and the price breaks above a line it might suggest the price could go up.

chartist analysis and chart patterns help us makes sense of the Cryptocurrency markets past and potentially predict its future moves. Its like using clues from the past to make informed decisions abouts what might happen next in the exciting world of STEEM and others cryptocurrencies.

The shoulde head shoulder pattern is a classic chart pattern that signal potential trend reversal. It consists of three peaks with the Middle Peak (head) being higher than the two surrounding peaks (shoulders). The pattern suggests transition From an uptrend to downtrend.

Lets analyze the provided data for the BTC/USDT pair:

1. 5 Oct 2020:

• Open (O): $10 666.62
• High (H): $11 491.00
• Low (L): $10 525.00
• Close (C): $11 369.02 (+702.39 +6.58%)

2. 28 Jan 2021:

• Open (O): $34 702.49
• High (H): $36 600.00
• Low (L): $32 699.00
• Close (C): $35 286.51 (+586.17 +1.69%)

3. 8 Mar 2021:

• Open (O): $61 844.00
• High (H): $61 844.00
• Low (L): $49 274.00
• Close (C): $58 968.31 (+7 996.56 +15.69%)

4. 08 Nov 2021:

• Open (O): $63 273.58
• High (H): $69 000.00
• Low (L): $62 278.00
• Close (C): $65 519.10 (+2 245.51 +3.55%)

Shoulder-Head-Shoulder Pattern Analysis:

• Left Shoulder (5 Oct 2020):

  • A peak was formed at $11 491.00.
  • This marks the beginning of the pattern.

• Head (8 Mar 2021):

  • The highest peak in the pattern was reached at $61 844.00.
  • The head is higher than both shoulders indicating a strong upward movement.

• Right Shoulder (08 Nov 2021):

  • Another peak was formed at $69 000.00.
  • This completes the pattern with the right shoulder resembling the left shoulder in height.

1. Downtrend:

• Lower Low: $31 901.75
• Lower High: $35 303.17

2. Formation of the Head (H):

• The lowest point in the downtrend represent the head of the iH&S pattern.
• Head (H): $17 445.67
• The head signifies temporary climax of selling pressure. Its a critical point where bears were in control but struggled to push the price lower.

3. Formation of the Left Shoulder (LS):

• Following the head there a rally but it typically doesn't reach the previous high.
• Left Shoulder (LS): $19 717.29
• The left shoulder indicates a reduction in selling pressure. Buyers start to step in causing a bounce from the lows seen in the head.

4. Formation of the Right Shoulder (RS):

• After the left shoulder there another decline creating a second low but higher than the head.
• Right Shoulder (RS): $22 831.27
• The right shoulder mirrors the left shoulder signaling further weakening of the downtrend. It suggests that buyers are gaining more control.

5. Drawing the Neckline:

• Connect the highs of the left shoulder head and right shoulder to form the neckline.
• The neckline acts as resistance level and its upward slope is an essential component of the pattern.

6. Confirmation of Pattern:

• The confirmation of the iH&S pattern occur when the price breaks convincingly above the neckline.
• A decisive breakout above the neckline suggests potential trend reversal from downtrend to an uptrend.

Analysis:

• The iH&S pattern is a bullish reversal pattern indicating a shift in market sentiment.
• The lower lows and lower highs in the downtrend are challenged by the formation of the head left shoulder and right shoulder.
• The breakout above the neckline suggests that buyers are taking control potentially leading to an uptrend.

Trading Strategy:

• Traders often consider entering long positions once the pattern is confirmed.
• Stop loss orders might be Placed just below the neckline to manage risks.
• The projecteds target for the bullish move can be estmated by measuring the distance from the head to the neckline and adding it to the breakout point.

Yes I would incorporate chart patterns into the technical analysis of Steem. Chart patterns provide valuable insights into historical price movements and potential future trends. In the provided data

Today Steem Price: $0.2485

• Open (O): $0.2379
• High (H): $0.2534
• Low (L): $0.2339
• Close (C): $0.2493 (+0.0096 +4.01%)

Analyzing this data we can look for chart patterns that may indicate trend continuation reversal. Here are a few considerations:

1. Trend Recognition:

   • Identify if Steem is Currently in uptrend downtrend or Moving sideway.
   • Look for patterns likes higher highs and higher low for an uptrend and lower highs and lower lows for downtrend.

2. Support and Resistance:

   • Utilize chart patterns to identify key support and resistance level.
   • These levels can assist in making decisions on entry points stop loss placement and profit taking.

3. Pattern Recognition:

   • Search for classic chart patterns such as Head and Shoulders Double Tops Double Bottoms or Triangles.
   • These patterns can provide signals about Potential trend reversals or continuations.

4. Candlestick patterns:

   • Analyze individual candlestick or combinations of candlesticks to understand market sentiment.
   • Patterns like bullish /bearish engulfing doji hammer can offer insight into potential price movements.

5. Confirmation with Indicators:

   • Combine chart pattern analysis with technical indicators like Moving Averages RSI or MACD for additional Confirmation.
   • Confluence of signals from different indicator and Chart patterns strengthens the analysis.

the positive price movement (Close of $0.2493 with a gain of +4.01%) is noteworthy. This could be part of an overall trend or the beginning of a potential reversal. By combining chart patterns with other technical indicators more comprehensive analysis can be conducted to make informed decisions about Steem future price movements. Always remember that no analysis method guarantees future outcomes and risk management is crucial in trading decisions.