Trading Steem with Fractals and Multi-Timeframe Strategies.

_{Featured image created from Canva.com account.}

Explain what market fractals are and how they can be used to identify trend reversals. Provide an example of a bullish and bearish fractal using a STEEM/USDT trading pair.

What is market fractals are?

Fractals markets are recurring patterns that indicate changes in the prices within trends. They depend on the assumption that markets show similarity, which means that minor patterns likely to duplicate on bigger sizes, irrespective of the time frame during examination. The fractal is a set of at least five ongoing candlesticks, with the center candlestick indicating a high or low compared to the two previous and two next candlesticks. These patterns helps traders to identify market reversal points.

How market fractals can be used to identify trend reversals?

A bullish fractal is occur when minimim at least 5 candles forms wherein first 2 candles forms at lower side, the 3rd candle form with deep lower, then next 2 candles forms up side and crosses the 1st candles. Please refer to the left side image to understand how bullish fractal form on the price chart.

A bearish fractal is occur when minimim at least 5 candles forms wherein first 2 candles forms at upper side, the 3rd candle form with deep higher, then next 2 candles forms down side and crosses the 1st candles.

Please refer to the right side image to understand how bearish fractal form on the price chart.

Example of a bullish and bearish fractal using a STEEM/USDT trading pair.

The below image is of example of bullish fractal form on the STEEM/USDT price chart on 8th September 2024.

_{STEEM/USDT Price Chart - Bullish fractal.}

Here, we can see how the candles forms in V share in which the middle one is highest deep down compare to first 2 candles and then next 2 candles goes in opposite direction means upside, then the formation crosses the first candles and upside rally is started.

The below image is of example of bearish fractal form on the STEEM/USDT price chart on 1st September 2024.

_{STEEM/USDT Price Chart - Bearish fractal.}

Here, we can see how the candles forms in opposite V share in which the middle one is highest upside compare to first 2 candles and then next 2 candles goes in opposite direction means downside, then the formation crosses the first candles and downside rally is started.

Discuss how fractals can be combined with other technical indicators like the RSI, moving averages, or Alligator to improve trend predictions. Show a practical example of using these tools together on a Steem chart.

Fractal pattern can be used with other technical indicator like RSI. As we seen how bullish and bearish fractals pattern can be formed and indetified on a price chart. To improve the accurecy level we can use additional indicator to confirm the market trend prediction.

While using Fractal pattern with RSI indicator, the RSI price range move between 30 to 70, the RSI 30 level and below is oversold zone and expected price will rise from this level, the RSI 70 level and above is overbought zone and expected price will decline from this level.

To improve trend predictions, when bullish fractal formed with minimum of 5 candles, the RSI price should be below or close to the 30 level and moving towards the 70 level, if this pattern is matches then we can confirm that the trend is reversing and price may go up.

Similarly, when bearish fractal formed with minimum of 5 candles, the RSI price should be above or close to the 70 level and moving towards the 30 level, if this pattern is matches then we can confirm that the trend is reversing and price may go down.

Below images are the practical example of using Fractal pattern and RSI together on a Steem price chart and we can see how the RSI price reacted when bullish and bearish fractal formed.

_{STEEM/USDT Price Chart - Fractal pattern With RSI.}

Show how fractals can be used on different time frames (daily, weekly, or even hourly charts). Identify fractals on a daily and weekly Steem chart and explain how they interact to provide a comprehensive market outlook.

Fractal level with 1 Day time frame Chart.

_{STEEM/USDT Price Chart - Fractal level with 1 Day time frame Chart.}

Daily fractals generate more trustworthy trend reversal signs than hourly fractals. They could help swing traders to detect possible reversal points in the short-term market trends and providing a successful strategy to profit from price swings in multiple days.

Fractal level with Weekly time frame Chart.

_{STEEM/USDT Price Chart - Fractal level with Weekly time frame Chart.}

Weekly fractals mostly utilized by long term traders and investors to better understand the major market trend reversals or huge price moves in the market. Fractals on weekly charts are represent longer time periods and signal useful movements in market sentiment hence they become more effective for decision making in the market.

Fractal level with 1 Hour time frame Chart.

_{STEEM/USDT Price Chart - Fractal level with 1 Hour time frame Chart.}

Fractals on hourly charts might help day traders identify small price reversal changes or intraday reversals. Fractals on hourly charts are useful to detect exact entry and exit positions, but they are also at risk of false signals caused by market volatility and noises.

Fractals on a daily and weekly Steem chart and how they interact to provide a comprehensive market outlook.

The below images are the Steem/USDT chart examples of daily and weekly with fractals pattern. To know how fractals pattern interact to provide a comprehensive market outlook, we seen how bullish and bearish fractals pattern forms.

_{STEEM/USDT Price Chart - Fractal level with 1 Day time frame Chart.}

_{STEEM/USDT Price Chart - Fractal level with Weekly time frame Chart.}

Fractal pattern form minimum 5 candles one after another and the middle one will be the deep high for bearish indication and low for bullish indication as compare to surronding candles. When bullish fractal pattern form the market interact possitive and price start moving to the upside, likewise when bearish fractal pattern form the market interact negative and price start moving to the downside.

The interaction with Daily and Weekly fractals, fractals on higher time frames such as the weekly chart indicate bigger, more stable trends, whereas fractals on shorter time frames such as the daily chart provide more detailed and more usual indications.

Steem traders can take benefit from this interaction by comparing daily fractal indications with weekly trends. If a bullish fractal appears on the Steem weekly chart, the traders might try to find validation from a bullish fractal on the Steem daily chart to more accurately timing for entry trade. likewise, if the fractals on the Steem daily chart indicate a possible reversal but the same is not indicated on the Steem weekly chart, then here traders should have patience and wait until they see a better signal on both weekly and daily Steem chart before placing buy entry.

When both the daily and weekly Steem charts create bullish fractals, this interaction could point to a greater reversal level and a great chance to go long in the short term as well as the long term.

Create a complete trading strategy using fractals for the Steem token. Specify entry and exit points, stop-loss levels, and use recent fractals on a chart to support your strategy.

The following information is the simple trading strategy explained using fractals for the Steem token along with the entry and exit points, stop-loss levels. This trading strategy explained with recent fractals that formed in the current month on the Steem price chart.

Buying trading strategy using fractals for the Steem token.

_{STEEM/USDT Price Chart - Buying trading strategy using fractals.}

The above image is STEEM/USDT Price Chart and shown how buying trading strategy can be done using fractals for the Steem token. In this image, we can see the collective of candles formed fractal in which the middle one is higher deeper than the previous and next 2 candles, later the candle crosses the level, this level should be for a buy and stop loss will be just below to the middle deeper low candle. Then to exit the trade to book proft we can set target according to the previous resistance level like shown in the above image.

Short Sell trading strategy using fractals for the Steem token.

_{STEEM/USDT Price Chart - Short Sell trading strategy using fractals.}

The above image is STEEM/USDT Price Chart and shown how short Sell trading strategy can be done using fractals for the Steem token. In this image, we can see the collective of candles formed fractal in which the middle one is deep high than the previous and next 2 candles, later the candle crosses the low level, this level should be for a short sell entry and stop loss will be just above to the middle deep high candle. Then to exit the trade to book proft we can set target according to the previous supports level like shown in the above image.

Analyze Steem’s current market position using fractals. Where do you think the Steem token is in its fractal cycle (bullish or bearish)? What are the next possible moves? Support your analysis with other indicators such as RSI or moving averages.

To understand the Steem’s current market position using fractals we can check the Steem chart with multiple time frame. After conducting review I foun that Steem price chart with daily time frame, there is multiple fractals formed in the chart recently which quite confusing to predict next possible movement, below is the current daily time frame price chart for Steem.

_{STEEM/USDT Price Chart - 1 Day Time Frame.}

We can see the Steem is moving in a range between support and resistance since July 2024. Till now we can see 2 bullish and 1 bearish fractals formed, the most recent one is bullish fractals formed around 8th September. Later after this day, the price is rising, hence we can say the Steem current market position is in the bullish fractals.

Additionally, we have also applied RSI indicator to analyze the chart with fractals pattern. The RSI price is indicating the steem is currently close to the overbought zone, also according to the support and resistance, the steem price is currently close to the resistance level. The small correction is expected here, but as bullish fractals recently formed, if resistance break then next possible movement is mor upside.

Further, we have also validate the Steem current market position with different time frame chat that is 4 hours time frame, below is the current 4 hours time frame price chart for Steem.

_{STEEM/USDT Price Chart - 4 Hour Time Frame.}

After analyzing Steem price chart with 4 hours time frame, we can see the recently bullish fractal formed so now this is double confirmation of bullish trend as in above we seen bullish fractal is also form in 1 day chart. The RSI is also indicated uptrend but currently at overbought zone so small correction can be expected as mentioned above. Additionally, we can also find flag pattern formed in 4 hours time frame chart which is another bullish indication.

Overall, Steem current market position using fractals we can Steem token is in its Bullish fractal cycle. The next possible movement, the bullish trend will seems to remain continue as of not but a small retracement is expected.

_{Disclaimer: The information provided in this blog is for educational and informational purposes only. It should not be construed as investment advice or a recommendation to buy or sell any securities mentioned. Investing in the stock and crypto market involves risks, including the potential loss of principal. Readers are encouraged to conduct their own research and consult with a qualified financial advisor before making any investment decisions. The author of this blog is not liable for any losses or damages arising from the use of the information provided herein.}

Author,
@Stream4u
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