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Hello Friends, How are you? I hope all are fine and all of you enjoy your time in steem alliance community. I'm also fine & happy, today i am again back in this community for making my contribution with my crypto topics and showing my commitment with alliance community. Today i write my new crypto lesson in steem alliance community.

My dear friends today i again come for guiding my members about the crypto techniques and today we are going to discuss about Fibonacci retracement, Round numbers, these are the strategies to discover and read important levels in the crypto price chart and crypto market. So, let's start this is very important topic about the basics of crypto trading.

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Understand Fibonacci Retracement & Round Numbers the Crypto Trading Tool

The Fibonacci retracement tool is a trading tool that was developed based on the Fibonacci ratios. And these ratios are derived from Fibonacci sequence. The sequence is obtained by starting with 0 and 1 and then adding the two numbers to give 0 1 1 2 3 5 8 13 21 34 55 89 till infinity. To obtain the ratio, we divide a number with the ones that follow it and we get 0.618, 0.382, 0.236 and 0.786. The ratio of 0.5 is also used because there tends to be some level of tension at the 50% level.

^{Screenshot was taken from tradingview}

For an uptrend, we start at the last low to draw the levels. We draw it to the highest point and from the tool we can see possible resistance zones where the price would hit and retrace. I demonstrated this below;

^{Screenshot was taken from tradingview}

The Fibonacci retracement levels on the chart are drawn by measuring the given rations from a starting point. The levels obtained guide traders to where there could be possible support and resistance zones and help them prepare for retracements.

^{Screenshot was taken from tradingview}

For a downtrend, we start at the latest high and draw the levels up to the lowest point. From there we can see possible support zones where the price could hit and retrace upward.

Let's start about to round numbers, Humans normally tend to avoid errors. This is the behavior is very deep rooted in our psyche health and can affects many aspects of our lives. The use of Rounded numbers in trading is one of these aspects. Many traders are depend on the rounded numbers because it is an easy way to identify support and resistance levels on chart.

^{Screenshot was taken from tradingview}

They would prefer rounded values such as 60, 250, 400, etc. to values like 54.6, 468.3, etc. because the price would seem much more balanced at these levels. This psychology affects the market when large trades are placed at these levels and we can see the prices react to them. Let's see this below;

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Conclusion

This information is very important along with the trader's ability to recognize the different levels in crypto price chart and market. The fibonacci retracement and the round numbers, these are the strategiesof crypto to discover & notice important levels. Furthermore, this is always advisable to operate as the strong hands do, and operate with the trends. So, that's cause always recognise the levels with fibonacci retracement & round numbers.

Cc, @stephenkendal | rme | steemcurator01 Best Regards to, Faran Nabeel

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