Steemit Crypto Academy Contest / S14W4 - Fibonacci Retracements.
There are certain tools that are used for the identifications of level of support and resistance in financial markets and these tools are called Fibonacci retracements.There are series of numbers and each number is sum of two preceding ones like 0,1,1,2,3,5,8,13 and so on ...
Normally Fibonacci levels are 38.2% ,50% and 61.8% .These are the levels that are derived from mathematical relationships among Fibonacci numbers.These Fibonacci retracements levels are used by traders for identification of areas where price of a particular asset may fluctuate or can consolidate before it may continue in direction of overall trend.
If I talk about 38.2% retracement level then it is regarded as shallowest level and resistance area.If I talk about 50% retracement level then it is called significant level and traders normally keep an eye on that level and at last if I talk about 61.8% retracement level then it is deep and it is an area of strong support.
Fibonacci retracements levels are one of the most popular tools for the identification of significant support as well as resistance level in financial market. I am explaining about Bitcoin and US Dollars by implementing Fibonacci levels in chart.
You can see that I have applied Fibonacci levels at BTC/USD chart.
You can take an example in this way that if I say that price of Bitcoin and USD is in uptrend and now it is pulling back then we can draw Fibonacci retracements levels by swinging low to swinging high of trend so keep once syllabus that are 38.2% , 50% and 61.8% can act as support levels where price find interest of buying and to resume this upward movement.
Sure I would like to use STEEM/USDT chart for letting you know that how Fibonacci retracements levels are working.
Above you can see that I have shared a chart screenshot with you guys and you can see that major levels are giving us information regarding support and resistance levels.
So hopefully now it is understandable by all of you through the screenshot that I have shared.
Here I am discussing advantages and disadvantages of Fibonacci retracements:
Advantages
Objective levels of significant support and resistance would be provided to traders by Fibonacci retracements levels and all levels are dependent upon mathematical calculations which eliminate subjectivity from trading decisions also.
Fibonacci retracements are used by traders in a great way and it gives rise to price reactions at those levels when many market participants see same retracement levels.
Traders may get assistance by fibonacci retracements in identification of significant entry and exit points.An extensive trading strategy can be developed by traders by combining levels with technical analysis tools.
Disadvantages
- It's true that Fibonacci retracements provides objective levels but when we talk about interpretation then it can be subjective.Retracememts level can be changed or altered when traders have different opinions at swing highs and at swing loss to use.
- There is no guarantee of accuracy of Fibonacci retracements.Multiple factors can influence price movements in financial markets so if there is a use of Fibonacci retracements then it should be used in conjunction with technical analysis tools and indicators.
- There are some fundamental factors that have high impact at market conditions but Fibonacci retracements don't take this thing in consideration.Its really important to analyze market context and to consider conjunction of Fibonacci retracements with analysis for making significant trading decisions.
Saludos gran amigo khursheedanwar, como siempre nos deleitas con una buena participación, para esta oportunidad nos toca hablar sobre una herramienta o un indicador del análisis técnico llamado los retrocesos de finobacci, una herramienta que nos permite analizar gráficos para ver tendencias alcistas o bajista y así poder decidir cuando entrar o salir de una posición.
Te deseo mucha suerte y exitos, bendecido dia.
Thank you so much for your extensive comment at my post and I am happy that you always feel good to see my participation because you get a lot of knowledge through it as well as I am happy that you gain good knowledge about Fibonacci retracements which is I told for analysing a bullish or bearish trends as well as I also visiting your entry and it was also very informative and I learn many more things new that I have no discussed here and I also wish you good luck and success in your entry again
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Greetings my friend @khursheedanwar!
Your detailed breakdown of Fibonacci retracements is insightful, showing a deep understanding of their significance in trading.
Highlighting more live examples and diverse applications of these levels would enhance the depth of your already valuable posts! Keep sharing such enriching content!
All the best in the contest—success for you! 👍
Thank you so much for taking in count my participation a very detailed and comprehensive one as well as by gaining a significant and give understanding about the topic that I have explained
I agree with you that definitely if I would add more examples and more charts in my post then it would looking more good and valuable but still I am happy with content that I created after my research because I have no idea about this topic before posting here and soon I would be at your entry
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Absolutely, the objectivity of Fibonacci retracements in providing levels contrasts with the subjectivity in interpretation.
The variation in opinions at swing highs and lows among traders can indeed lead to altered retracement levels. It's a reminder of the dynamic nature of market analysis and the diverse perspectives that shape trading strategies.
I have also participated in the contest, do well to check it out and engage. My post link to the contest.
You are right about Fibonacci retracements and about comment after reading my post as well as I am happy that you agree with me that swings high and Lowes among traders can lead to change in recruitment levels as well as fluctuating nature of market analysis can be regarding by this powerful
I have visited your entry too which was very informative for me but somehow you were little bit less in your research but I am sure that next time there would be more knowledge that I would know from you good luck to you in your entry
Hello dear friend... I hope you're doing great..
One thing I love about your post is the way you navigated your points and the good choice of words that made it more understanding...
Fibonacci retracements is the root of the Fibonacci sequence a mathematical concept. In the world of trading today, it has been used in the crypto market, forex market, financial institution to help traders make entry and exit points to gain support and avoid possible losses.
To use this great tool, one needs to hsve full knowledge about what it is and how it works. It is a very Great and one of the best indicator that when combined with other good indicator ls helps is to achieve a more accurate result and therefore improve our analysis. It works more efficiently when combined with other indicators...
Such a everything that has advantages, the Fibonacci retracements has it own advantages and the show how relevant they are to traders and the market. As other tools have disadvantages, the Fibonacci retracements has it disadvantages too... You've done a job weldone.. I commend you for that...
Thanks for sharing and good luck with the challenge...
Thank you so much for your comment at my post which is very extensive and it is very valuable for me because I am sure that you gain a comprehensive understanding through my post and now you are here in the form of comment about sharing your views on it so I totally agree with you that Fibonacci retracements is just like a sequence of mathematical concepts
When we use this tool then we would be able to have complete knowledge regarding working of this complex methodology which is not very easy to understand but it is very useful as well as their can be different advantages and disadvantages of it that I have explained in my post and I would like to visit your entry to so that I may learn many more through your post I wish you success in advance in your entry to
THANKS friend.. here is my entry https://steemit.com/hive-108451/@emmy01/steemit-crypto-academy-contest-s14w4-fibonacci-retracements
Sure it would be a great pleasure for me to visit this entry
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Greetings,
Fibonacci retracement is indeed a powerful tool for technical analysis, but like any other analysis tool, it has its advantages and disadvantages.
To make the most of it, it's important to take the time to understand how it works and explore other indicators that can complement it because by combining different tools and indicators, we can enhance our analysis and achieve more accurate results. I wish you success in the contest.
Thank you so much friend for your comment at my post as well as I am agree with you that it is one of the most powerful tool for technically analysing fluctuations in market as well as there are some of the advantages and disadvantages of it also as I have also explain in my post
Agree with you that it is very important to give a proper time for having understanding of its working as well as exploring other indicators also that can also be used and can be very helpful for analysing price fluctuations and for predicting them in right way and soon I would be there at your entry but I wish you good luck in advance
Indicas que el nivel de retroceso 38,2% se considera el nivel más superficial y un área de resistencia, el 50% el nivel significativo donde los operadores ponen su atención como el nivel crucial y 61,8% como el nivel de retroceso profundo con fuerte soporte.
Dentro de las ventajas más notables que ofrecen los niveles de retroceso de Fibonacci a los operadores como objetivos de soporte y resistencia significativos.
Gracias por compartir, saludos y mucho éxito.
Friend you are right that if we talk about 38.2% retracetment level then it is one of the most shallowest level and it is one of the most resistant area which is 50% as well as you have also talked about 61.8% replacement towel which is that with the strong support
I have explain about pros and cons of this method and hopefully everything in my post would be understandable for you and I also want to see thanks to you that you visited my post and soon I would be there at your entry to back before this I wish good luck to you in advance