A good morning to all Steemians
1st of all I want to say that I'm grateful to be able to post my views here on Steemit.
Without further a due lets look at my technical analysis for STEEM/Bitcoin (Daily Chart):
Looking at the chart there are two major support areas that I'm looking at. The first is the 0.00063514 price area and secondly the 0.00042505 price area, with the latter more important.
Why are these areas so important?
The areas coincide with the 38.2 and 61.8 Fibonacci levels. The 61.8 Fibonacci level is more significant due to multiple price touches that indicates a good support area. I see these areas as good value areas to buy.
My approach:
- At these two areas of support I will wait for a bullish confirmation such as (Bullish pin bar or bullish engulfing bar).
- If I see a bullish confirmation at support area (38.2 Fibonacci), I will invest 38.2% of the cash allocated to this currency.
- I will hold my position until it reaches the 0 Fibonacci level and sell 50% of my stake to free up cash for a potential re-investment or for other currency investments.
- If price moves below the 38.2 Fibonacci level I will wait for a bullish confirmation at the 61.8 Fibonacci level and invest 61.8% of the cash allocated for the currency and sell 50% of my stake at the 0 Fibonacci level to free up cash for potential re-investments.
- If price however shows a bullish confirmation at for instance the 50.0 Fibonacci level, I will invest 50% of the cash allocated to this currency.
- Alternatively I can invest at these levels without waiting for bullish confirmation but it is much more risky.
- I do not trade on exchanges. I hold my positions in different wallets.
- I do not invest more than the 100% allocated. I can invest 38.2% and 61.8% at the 38.2 and 61.8 Fibonacci levels respectively.
- If I invested 38.2% and 50% at the 38.2 and 50.0 Fibonacci levels, I then can only invest the remainder of the 100% cash allocation at the 61.8 Fibonacci level.
This approach is a bit contrarian but it is something that works for me.
Remember to only invest in cryptos with good fundamentals.
This is my first post so I will appreciate any constructive feedback and I welcome any questions you may have.
Happy investing/trading
Nixeus