Steemit Crypto Academy Contest / S14W4 - Fibonacci Retracements
Hello my dear friends
First of all I would like to tell you that this is my first ever post in this community and I have never participated in this community and my friend actually told me to participate and learn about more crpyto so for me very hard right about this post.
So first when I am here and this topic I actually learn a lot about this topic and I have search it on Google on Wikipedia then I have seen and then about it on YouTube and finally I able to summarise and what is actually for and after that I have make it simple and able to participate in this contest.
This is my first ever participation I hope that I would able to fulfill all the rules and regulation of this community as well as and the topic which is selected and I hope that I will try to fullfilled all the requirements which are needed to write about this topic as well so let's get started.
In your own words, what are Fibonacci Retracements and what are they used for? |
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In one word if I try to define the term this is actually analysing the support and resistance by drawing horizontal lines which help us actually to do good marketing in finance.
In early 1400 there was one italian mathematician actually discovered this ratio.
And how we can calculate the ratios by choosing the two high values and then substract it and ratio will be calculated and than according to that we do trading.
So there are some particular or we can say common point which are important for trading.
23.7%, 38.6%, 50%, and 61.9%.
So how actually draw the fibonacci actually we take the two points from 0% and then from 100% and in between this percentage we actually draw so many vertical lines to see the fluctuations between two extreme levels and then we compare it substract it with two levels of what is going in the market and what we are at least try compare it.
Aim and the main use of it is actually we are trying to prevent the traders from any loss we are tried to getting the we are tried to getting the ideal price and 3rd most important thing is we are managing to keep the transaction in an ideal price.
Secondly the most important thing is went to use the fibonacci when it is important to use when the market levels are in the trend upswing then only you will go upswing.
Explain the most important Fibonacci levels and show at least one example on a chart of a cryptocurrency pair |
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So first I have shown here Fibonacci with chart of cryptocurrency as I mentioned and earlier so we will market according to some common point which have been using so much like 50% now this point is the point which always keep on changing and but this is most important point but not always stay 61.8% now this is the point where we have to revert back specially for traders because it is the refer point to do trade.
38.2% this is the most important point for retracement because it is the start point or initial point where we have to start the trading.
Firstly and this chart which I made is from the website I have shown the link source
So far the better understanding of the chart is you must focus on the two point one here is green point another one is red point on the right side the green point main this is actually the point where we start the trading and it is actually when the price is retracing the expected highest value which we want.
And the red point is where the price will revert back to the green point and it is actually representing the resistance.
And I have shown here the price is retraced from the
2273.2 which is the starting point from where we will retrace and price will revert back to retracement.
2272.9 is the expected price which will hit the highest upswing point and it is compared the 61.8% retracement the most significant point for trading.
In this chart I was trying to show the most significant point which I am using is 32.9% which is for upswing and move for trading.
Use the STEEM/USDT chart and show how Fibonacci retracements work |
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Now let's see how the Fibonacci retracement works firstly on the website I have clicked on the gib retracement and after that I have plotted this chart and from this chart we will start trading
Just focus on the red box and once the red is basically we are setting the trade and we are trying to retrace at this level. And than at the same time on opposite side there is blue 🔵 box which is showing us the retracement which is expected to be.
Now let me give you an example for example this is the Fibonacci retracement which I have tried to plot and shown the swing occuring on 20th of the April and the swing was going low at .6955 and I have also shown the swing going high on .8264.
Now how to retrace the AUD/ USD from chart we can calculate it's clear from the charting
.7955 is 23%
.7764 is 38.2%
.7609 is 50%
.7555 is 61.8%
We easily retrace from chart once you understand easy to calculate.
Oh this is I am showing the swing high which actually occurred on January 25th and it is at 1.4195 and then at the same time I am showing the swing going low and which is occurred at 1.3854 after some days on February 1.
If we calculate the retracement so this is calculated will be as 1.3933 (23.6%) and 1.4983(38.2%),1.4023 is 50% and 1.4064(61.8%) I hope it will clear and you have understood.
Advantages and disadvantages of Fibonacci retracements |
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Decision making capability
I am advantages of this is this makes our decision capability more strong and this is best for an decision making in market values.
Simplicity
It's is really very easy to use once you understand but you must be master in understanding the Charting.
Secondly the advantage of this is it can predict the resistance and the support.
When to enter market
The important advantage of this is for all the traders and sellers is they can enter at the best time in the market and exit is also at the best times so the chance of loss is very less
Over aliance
There is one most common disadvantage of this is over Aliance because Fibonacci this is actually always arranged in a way that it will see towards backwards so we can't actually predict the future with this.
Volatility of marketing
This is actually in effective in another second important major issue which is unpredictable market values because now in modern heera the market value of highly volatile so the Fibonacci is actually and basically based on the historic so we can't actually predict the highly volatile market values.
Unprofessionalism
The disadvantage of this is that if you want to use it if you must thoroughly know exactly how to see up swing and down swing what fluctuations are seen trading than only you can get profit on risk
All of pictures I have taken with my mobile.
Thank you
I have used different websites to understand fully and I sharing the link from where I understood
At last must salute to all the participants who have been the part of this contest how much difficult was about to write this post it took 6 days and nights for me to share this post to search about this and I have learn about this and than At last I was able to write about something I need your guys support and guidance to learn more about this
You've done well, as you've taken the time to explain Fibonacci retracements to me. It was incredibly helpful, and I'm grateful for your guidance. You really broke it down in a way that made it easier for me to understand. Now I feel more confident using this tool in my trading and investing decisions. Your teaching skills are top-notch. Good luck in the contest.
Upvoted. Thank You for sending some of your rewards to @null. It will make Steem stronger.
Bienvenido a esta comunidad, estoy seguro que aprenderás de todos al igual que aprenderemos de tí para mejorar nuestro entendimiento del mundo cripto cada semana.
Haz detallado el uso de los retrocesos de Fibonacci que consolidan tu comprensión sobre esta herramienta tan interesante y los criterios establecidos para la interpretación de los principales niveles de retroceso.
Gracias por compartir, te deseo mucha suerte y éxitos.
Good day dear friend...you have done what seems like justice to this topic in your own way. It was nice going through your publication. I appreciate your efforts and time put together to give this post today...
The Fibonacci retracements is quite one of the best tools in the market of traders that has helped us to to mark entry and exit points in the market mostly. Like you rightly stated, it is a tools that actually helps us to make good decisions and marketing in finance. But qe should always remember that we are bound to make good analysis and have good results as well, when we use the Fibonacci retracements alongside other indicators when needed....
The different levels of the FB retracements are rooted to the mathematical series of FB sequence...
You did well with the presentation of correct images on how the Fibonacci retracements works on a cryptocurrency pair and the STEEM/USDT chart as well. It was clear....
Of course with advantages, we will eventually have disadvantages too. The Fibonacci retracements is not left out... It would have been nice if you had clearly marked out differently, the advantages and the disadvantages.. anyways, it was Great reading...
Thanks for sharing and good luck with the challenge....
Welcome to the community! It's great to see new participants eager to learn about crypto. Your dedication to researching and summarizing the topic reflects your commitment.
Your effort to participate in this contest is commendable. Best of luck with your entry, and feel free to ask if you have any questions or need further guidance. Happy writing!
Thank you for publishing an article in the Crypto Academy community today. We have accessed your article and we present the result of the assessment below
Comments/Recommendation:
You have given your opinion and explained Fibonacci Retracements. Your explanation is not clear.
You explained the most important levels of Fibonacci retracements. I would have liked to see an example on a chart of a cryptocurrency pair and the indicator shown on the chart. You have only shown the chart.
You used the STEEM/USDT chart and explained the Fibonacci retracement, but I could not see the indicator on the chart, i.e. the Fibonacci levels. Also you use images which are not author free.
You have mentioned the advantages and disadvantages of using Fibonacci retracements indicator.
Recommendations: You should use only author free images, such as pixabay, pexels.
In this case, you could use tradingview charts and use the indicator.
Invalid entry.
Invalid entry.
@pelon53 I Didn't get on what basis it's invalid entry I have mentioned the source and website link as well
Very bad experience and reviews of posting in @steemitcryptoacademy
Hola amigo @shanza1, muy bien que hayas puesto la fuente, pero estas tomando esas imágenes de sitios sin autorización. Y debes hacer tu propio análisis, no tomar imágenes ya con la información dada. Reconozco tu esfuerzo.
No te desanimes, vendrán mejores momentos. Espero ver tus proximas entradas, eres bienvenido.
Saludos y bendiciones
Yes @shanza1 he is saying right that you don't need to be discouraged on this review because it is my personal experience that when I started working here then many times I get rating less than 8 and I was discouraged at that time but still I don't skip working and now you can see that now I understand that how and in which way I have to make research.
He just want to say to you that just like all of other participants you should also learn to analyse and then you should have to show your original screenshots in which we can see your affects what all it was a good understanding of this topic by you.
I agree with you that whenever there is a fluctuation in cryptocurrency then there is a method you that is used for the analyzation of support and resistance levels by making the horizontal lines as you are saying and I agree with it as well as you have explain about its discovery in little bit that there was Italian mathematician who discovered this method for prediction and analyzation
If I talk about second and third question then they are little big confusing because it seems to me that you give a general understanding and general knowledge about these questions because this is not technical analysis what you have made as these are not original screenshots that you have taken but over all general understanding is not bad by you but if I talk about your 4th question then I read you have mention some of the advantages which are true and some of the disadvantages which are also true and I agree with them
You tried to participate in this engagement challenge in your best way but you need to make sure that you take your own screenshot and then explain them so that you may get more good grade. Unfortunately this entry is invalid by the professor but I want to encourage you that you have not convey totally wrong knowledge but you have to be careful in many things for making sure your participation valid here. I wish good luck to you for the next time
@khursheedanwar I have also mentioned the website link from where I search and write about everything and also for pictures same
If I spent 5 days and write and than it's invalid do you think I ever spend this much time to write again never thank you for elaboration
Thank you so much for responding back at my comment and I am happy that you have mention proper sources from which you made research because it can make sure your originally of the content in more secure and good way
Wow such a tremendous and beautiful work friend thanks for sharing I really appreciate your good work.
This is very true because this trading analysis can only be employed or used only in a trending market so therefore using this strategy in a stable market would only cause you confusion.
Indeed you really understood about this trading strategy thanks for sharingThanks for sharing wishing you success please engage on my entry. https://steemit.com/hive-108451/@starrchris/steemit-crypto-academy-contest-s14w4-fibonacci-retracements
Greetings dear @shanza1!
Your dedication to researching and sharing about Fibonacci retracements is commendable. Your detailed explanations show your commitment to educating others in the community.
Keep up the fantastic work, sharing quality content like this is invaluable. All the best in the contest, success for you! 👍
Ooh dear... It is a heart wrenching moment as your entry is declared invalid 🫠. I can understand what you are thinking and feeling right now but don't feel demotivated over that. I know you have made a great effort in writing that article but I suggest you to keep working hard and don't look at one bad thing. Keep growing hard and very let down. Best of luck 🤞