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RE: Steemit Crypto Academy Contest / S18W2: Mastery of Moving Averages and Fibonacci Retracements

in SteemitCryptoAcademy5 months ago

You have created such a great and high quality content. The content is connected and I would say cohesive. I enjoyed going through it.

Fibonacci retracements are a popular tool in technical analysis used to identify potential support and resistance levels.

In my opinion, Fibonacci retracements are very helpful for traders to identify where a stock's price might stop falling or rising. They use this tool to make more informed trading decisions.

A Golden Cross occurs when a short-term moving average, typically the 50-day SMA, crosses above a long-term moving average, such as the 200-day SMA."**

I think that when the 50-day moving average crosses above the 200-day moving average, it signals that the market might go up. This Golden Cross is usually seen as a positive sign by traders.

The Exponential Moving Average (EMA) gives more weight to recent prices, making it more responsive to new information.

As far as I know, the EMA is useful because it reacts faster to recent price changes than the simple moving average. This helps traders catch trends quicker.

To use Fibonacci retracements, we first identify the recent high at $100 and the recent low at $50.

As a trader, to apply Fibonacci retracements, I first need to find the highest and lowest prices of a stock over a period. This helps set up the levels to watch for support and resistance.

Using these retracement levels to help them make decisions, traders may think about purchasing at the support level and selling close to the resistance.

I believe traders often buy when the price is at a support level and sell when it's near a resistance level. This strategy uses Fibonacci retracement levels to guide their actions.

Good luck .

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Thanks for reading my post. I'm glad you found it cohesive and helpful. Fibonacci retracements, Golden Crosses, and EMAs are indeed valuable tools for making informed trading decisions.

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