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Chart Patterns (Triangle) How to trade them by danielfankhauser

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· @danielfankhauser · (edited)
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Chart Patterns (Triangle) How to trade them
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<p>&nbsp;Hey guys i want to make the community a bit more "TradingFit" so i am talking about technical Analysis and chart patterns. Today about Triangle Patterns.</p>
<p><br></p>
<p>A Triangle Pattern can be a &nbsp;continuation or a reversal pattern. &nbsp;Theoretically, they look pretty clean and easy to read. &nbsp;But in a real market, it's not that easy as we think. But later more on that. &nbsp;&nbsp;</p>
<p>So we distinguish between 3 Triangle Patterns&nbsp;</p>
<p><br></p>
<ul>
  <li>The Symmetrical Triangle</li>
</ul>
<p>&nbsp;We are talking about a Symmetrical Triangle when both trend lines move to each other and we have at least 2 high points &amp; &nbsp;2 low points which touch the trend line &nbsp;</p>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34119515_176840699693722_8884036081071161344_n.png?_nc_cat=0&amp;oh=6569dbc364b590e8239b7129c7de3dfa&amp;oe=5B80A75B" width="693" height="490"/></p>
<p>&nbsp;</p>
<ul>
  <li>Ascending Triangle&nbsp;</li>
</ul>
<p>&nbsp;On an Ascending Triangle, we have a rising trendline moving to a horizontal trendline. Here we also have at least 2 high points &amp; &nbsp;2 low points which touch the trendline &nbsp;</p>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34139970_176846013026524_3169790687419826176_n.png?_nc_cat=0&amp;oh=c5678b5216b1acd56d0a933520b66c8f&amp;oe=5BB1FC96" width="738" height="478"/></p>
<p>&nbsp;</p>
<ul>
  <li>Descending Triangle&nbsp;</li>
</ul>
<p>&nbsp;A Descending Triangle is the opposite of an Ascending Triangle. Here we have a downward moving trendline to another horizontal trendline below. But we also have at least 2 high points &amp; 2 low points wich touch the trendline &nbsp;</p>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34177434_176847913026334_2971304194083913728_n.png?_nc_cat=0&amp;oh=bb7a1252052ec453533006aef07ed08b&amp;oe=5BC31013" width="649" height="474"/></p>
<p>&nbsp;</p>
<p>So now we know the 3 &nbsp;Triangle Patterns &nbsp;(Descending, Ascending &amp; Symmetrical ). But how we do work with them.&nbsp;</p>
<p>When we have a Triangle Pattern we will always have a Breakout because the Pattern will at some Point close. &nbsp;There are a few &nbsp;scenarios which can happen.</p>
<ul>
  <li>Bullish breakout &nbsp;(continuation or reversal )</li>
  <li>Bearish breakout (continuation or reversal )</li>
  <li>Sideways breakout (only in Symmetrical Triangle)</li>
</ul>
<p>&nbsp;Let`s start with a Symmetrical Triangle breakout. Here we can see a few options.&nbsp;</p>
<p>&nbsp;</p>
<ul>
  <li>The green line shows a &nbsp;Bullish breakout which means we are going for a long (buy) position</li>
  <li>The blue line shows a Bearish breakout which means we are going for a short (sell) position</li>
  <li>The purple line shows a Sideways breakout which is actually the worst breakout we can get out of this triangle.</li>
</ul>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34054197_176858403025285_1783812729639796736_o.png?_nc_cat=0&amp;oh=2559a918d337aba6b957cdf07cad52c2&amp;oe=5BB22CC2" width="1106" height="582"/></p>
<p>&nbsp;</p>
<h2>Trade a Symmetrical Triangle</h2>
<p>&nbsp;As we know now what a Symmetrical Triangle is and in which directions it can breakout we need to know how we are going to trade it and where to set all important points we need.</p>
<h3>Breakout Entry Points&nbsp;</h3>
<p>To set a good entry point i use a pitchfork (Median 0.75 &amp; 1.4)&nbsp;</p>
<p>&nbsp;We will enter a long position (buy) as soon we will hit the green zone. This is our confidential zone. The Grey Zone is the fakeout Zone. So if we break out but we don`t make it out of the grey Zone we wait. &nbsp;In this case, it would be a bullish breakout.&nbsp;</p>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34019873_176861823024943_2652325167807594496_n.png?_nc_cat=0&amp;oh=1089d58d6f571afff197f5c78b795b18&amp;oe=5BC2BA64" width="956" height="585"/></p>
<p>&nbsp;Here we can see the opposite direction. We are facing a bearish breakout. As you can see we wait here aswell until we hit the green zone. <img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34102802_176862716358187_8640333971634257920_n.png?_nc_cat=0&amp;oh=04c8d46299974d02c2f31d0df884c986&amp;oe=5BC17600" width="912" height="538"/></p>
<p>&nbsp;<br>
This is the most unlikely &nbsp;outcome. If we have a sideways breakout. As you can see we had before a so-called fakeout. We broke trough the lower trend line but we didn`t make it in our green zone. so we would have stayed away. On a Sideways breakout, we are waiting until we leave the yellow zone and recalculate the Triangle Pattern.&nbsp;</p>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34201969_176864423024683_8677326688163463168_o.png?_nc_cat=0&amp;oh=d8364ae081c15db2d22926660b488c42&amp;oe=5B828A75" width="1046" height="582"/></p>
<p>&nbsp;</p>
<h3>Target Zone</h3>
<p>If we want to calculate the target zone for a breakout there is a simple and a mostly accurate way to do this. You Take the Highest point in the Pattern and the lowest point. Calculate how many Pips/Points or Percent it is and then adds it to the point where the breakout started. &nbsp;&nbsp;</p>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/p720x720/34076005_176871873023938_3484583872929202176_o.png?_nc_cat=0&amp;oh=0eae4bec4f1f4869c2d651b059ebb447&amp;oe=5BB21D6F" width="1168" height="720"/></p>
<p>&nbsp;</p>
<h3>Stop Loss&nbsp;</h3>
<p>Now we know how to trade a Symmetric Triangle but what if something goes wrong where do we set a Stop Loss to prevent yourself from a big loss. When Peoples talk about Stop-Loss their opinion is split as wide it`s possible... I personally think it also always depends on how much you invested in that trade. For example, someone who is Trading everything with 1% of his Portfolio I personally think he doesn`t &nbsp;need a Stop loss at all... But someone who is trading with 50% Portfolio and also use a leverage, I would definitely recommend him a smart Stop-Loss. So overall there is no right or wrong way but let me give you an idea which I think would be smart to use.</p>
<p>I would recommend you to use a Stop Loss Zone which is a bit below the Triangle Trendlines like you can see it on the Image.</p>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34203632_176878019689990_4727654039544659968_o.png?_nc_cat=0&amp;oh=624a70c150e8a1626b98f57db4bca967&amp;oe=5BB9DA4E" width="965" height="583"/></p>
<p>&nbsp;</p>
<h2>Trade an Ascending &amp; Descending Triangle</h2>
<h3>Trend continuation or reversal Breakout</h3>
<p>An Ascending or Descending Triangle breaks out in a trend continuation or in a reversal. When we trade one of these Triangles we are always facing a support or resistance level. which means most of the time we are trading it during a trend.&nbsp;</p>
<ul>
  <li>Here some examples a breakout could like&nbsp;</li>
</ul>
<p>&nbsp;Ascending Triangle Trend Continuation Breakout&nbsp;</p>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34103738_176884149689377_1078659411230064640_o.png?_nc_cat=0&amp;oh=c2b00f2b44ee9f312805bd18aae2afd0&amp;oe=5B7D089D" width="1104" height="503"/></p>
<p>&nbsp;Ascending Triangle Trend Reversal Breakout&nbsp;</p>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34158178_176884226356036_3300511388622913536_o.png?_nc_cat=0&amp;oh=fe101f7ddb01391b84c9752c4c3cd449&amp;oe=5B82B120" width="1099" height="490"/></p>
<p>&nbsp;Descending Triangle Trend Continuation Breakout&nbsp;</p>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34162891_176884716355987_1134272825327091712_o.png?_nc_cat=0&amp;oh=92678c67903d5ad90faf15c5ecdc0155&amp;oe=5B88A839" width="991" height="515"/></p>
<p>&nbsp;Descending Triangle Trend Reversal Breakout&nbsp;</p>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34162966_176884789689313_3536135016763359232_o.png?_nc_cat=0&amp;oh=10447672e3a29d741c8453d727403805&amp;oe=5B823F9D" width="1027" height="375"/></p>
<p>&nbsp;These are the possibilities a Descending or Ascending Triangle can breakout. In general, we Trade them in the same way as we trade the Symmetrical Triangle Patterns.&nbsp;</p>
<ul>
  <li>Pitchfork for Entry Points and prevent from fakeouts</li>
  <li>Target Zones calculated on Highest and lowest point inside the Triangle</li>
  <li>Stop Loss zone a bit below the triangle trendline which got broken through the breakout.</li>
</ul>
<h2>Let's see how this looks in a real Market</h2>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34037547_176889123022213_2711871466277699584_o.png?_nc_cat=0&amp;oh=21227c3bcdad79034398ce4afd09ee51&amp;oe=5B79597E" width="1403" height="676"/></p>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34111320_176889196355539_3714325736631304192_o.png?_nc_cat=0&amp;oh=7cd3b78fd0efbb9ee2a4a76301becc25&amp;oe=5BB8694E" width="1119" height="507"/></p>
<p><img src="https://scontent-frt3-1.xx.fbcdn.net/v/t1.0-9/34259047_176889266355532_292098080101105664_n.png?_nc_cat=0&amp;oh=dd7fdbdd26322231e929ff24694a598d&amp;oe=5BB8A39E" width="725" height="544"/></p>
<p>&nbsp;As you can see in the real market they are not that easy to spot and they do not look as perfect as in the theory. But if you are used to it someday you are able to recognize them pretty fast in the market and you get an eye for it. &nbsp;</p>
<h3>Summary</h3>
<p>I think Triangle Patterns are a really accurate and solid technical Analysis Pattern. They are simple to understand and once you get used to them you can draw them pretty fast and take your decision on a Position. I hope I could explain to you how the technical analysis of a Triangle Pattern works. If I did everything right you know now how to spot them, set entry, exit, stop loss points &amp; you are confident with them.<br>
</p>
<h3>Additional Notes</h3>
<p>If you are struggling to spot a Triangle in the beginning or you don't want to spend that much time to find them. You can google the keywords “Chart Pattern Scanner” or “Chart Pattern Recognition” you may find some pretty solid software or Web sites which provides you with chart patterns. Mostly you can select to search for certain patterns like triangles.<br>
My goal is to make the world trading fit with my blog. I try to explain everything as simple as possible and make it available for everyone. If you share this Article you can help me making more peoples Trading Fit. If you have any critic or an idea for a next article leave me a comment and I try to answer you as fast as possible or will write an article if its a certain Theme.</p>
<p>Daniel</p>
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@anealireki ·
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@annieliu ·
good post.
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@danielfankhauser ·
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@conovan ·
very helpful!
Tnx!
@Conovan
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@danielfankhauser ·
Thanks check out my new Article about Ger30 Trading https://steemit.com/trading/@danielfankhauser/cfd-ger30-trading-strategy
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@cptsilva ·
Very informative for the newbie trader in me. Let me see how I can put it to use. Thanks.
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@cryptofudler ·
nice article!
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@danielfankhauser ·
Thanks check out my new Article about Ger30 Trading https://steemit.com/trading/@danielfankhauser/cfd-ger30-trading-strategy
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@decayboy ·
fossbot voter comment
Cool, thanks for sharing.
👍  ,
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vote details (2)
@danielfankhauser ·
Thanks check out my new Article about Ger30 Trading https://steemit.com/trading/@danielfankhauser/cfd-ger30-trading-strategy
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@famerazak ·
Nice article, super helpful, thanks.
👍  
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vote details (1)
@danielfankhauser ·
Thanks check out my new Article about Ger30 Trading https://steemit.com/trading/@danielfankhauser/cfd-ger30-trading-strategy
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@freecoins ·
Once upon a time...
Steemit content wasn’t always the way it is now. Before the concept of 'Author Reputation', and during the first Great Steem Bubble where we hit $4 per steem, the woodworks opened up. All sorts of people came out for a piece of the pie; spam, scams, plagiarism, fraud, and identity theft all ran rampant. Almost a year ago, I ( @anyx ) created the first form of the infamous @cheetah bot in an attempt to combat this. Back before voting bots were common place, Cheetah was actually one of the first: downvoting what I had identified as spam and fraudulent accounts. When a bounty emerged to try and identify plagiarized content, I build my own algorithm using custom web search API's to scour the internet for similar content, and then, Cheetah was truly born.

Yet, the landscape has changed since the wild-west that we started with. After Cheetah came the Steemcleaners initiative, and users who remember how bad sorting out content was in the beginning, remain staunch supporters of the project to this day. And, despite a few bumps in the road, I continue to run Cheetah -- however, she's not nearly the same as when she started.

In general, Cheetah has now become solely informative, with Steemcleaners -- real people -- as the actual action taker. While the original explanation post of Cheetah is still valid, she has evolved quite a bit over the year.

So, the purpose of this post is to clarify a few things that often come up, as frequently asked questions.

FAQ
Q: What is Cheetah?
Cheetah is an informative robot that might comment on your post. If she does, she will claim that she found similar content somewhere else on the web. This is because you likely copy&pasted some form of content -- whether it be your own or not.

The interpretation of the comment is up to the voter who reads your post: the comment, in general, means that the voter will likely desire an understanding of the source of the content that you posted.

Q: Is Cheetah a 'plagiarism robot' or a 'police bot'?
NO! The truth of the matter is, it's basically impossible to determine identity online. As such, Cheetah can never determine if content is plagiarism, a form of sharing, or an in depth quoting. While I try to avoid issuing comments when a post appears to be form of sourced sharing, it's a lot harder than one would think to program ingestion and understanding of content. Which brings me to the next point.

Q: Does Cheetah discriminate based on the type of content within a post?
While some... interesting people... may peddle that I am a censorship fascist, the truth is that I, and thus Cheetah, don't care what kind of content you post. What the content is doesn't matter, only the similarity to other content on the web. In fact, there is decades of literature on machine learning trying to solve the problem of actually understanding content or sentiment, and we still are not even that good at it. I don't know how to do it either.

Q: Is receiving a comment (and upvote) by Cheetah a bad thing?
Due to the above two points, I want to stress that a comment about detection from Cheetah is NOT an accusation of malicious intent. Simply put, the comment informs the reader that the content can be found on the web in another place, and was there before the Steemit post.

There are many cases where this isn't malicious: for example, a writer of a blog deciding to re-post all their content on Steemit. However, the comment is a useful reminder to the reader: while the author may or may not directly say the content is reposted, the reminder to the voter allows them to make an informed decision of whether or not they wish to reward the post. In general, on Steemit, original content is more well received compared to reposts. And reposters that attempt to trick the readers into believing they are providing fresh content, can ruin their reputation forever. It's an ambiguous area, where the voter needs to decide. All that the Cheetah comment does is provide information to the voter.

Q: Does Cheetah flag posts?
For the most part, no. People continuously claim that 'Cheetah has flagged them', when they actually mean that Cheetah has issued a comment on their post. It's important for people to understand the distinction in the language here, as flagging has a negative connotation: being mostly used for actual abuse. Cheetah does NOT flag on content detection, she upvotes.

However, if a user spams continuously, plagiarizes and attempts to defraud the community, or claim someone else’s identity, the user will be continuously flagged in the future. Being on this blacklist is NOT an automated procedure, but rather is controlled by @steemcleaners. (Note: the 'blacklist-a' or related accounts are not part of Cheetah or Steemcleaners.)

Something else to keep in mind is that flagging is not censorship. Your posts will remain immutable forever on the steem blockchain, and anyone can read it and interact with it. Being rewarded, however, is a privilege.

Q: I hear that if I get a Cheetah comment, people won't vote for my post. Is that true? If so, you owe me money.
There are some voting bots that may ignore posts that have been flagged by Cheetah. But remember, Cheetah does not flag posts on detection. In fact, she actually upvotes, as a sign of good faith.

Despite this, I have gotten into arguments where, due to the Cheetah comment, the user believes they lost money that they otherwise deserved. Keep in mind that I don't owe you anything, and nor does anyone else on this platform: actions here are voluntary. If you believe you are owed a vote from a particular person, and they did not vote for you, you have the option of reaching out to them and tell them why they must vote for your post. I cannot control the actions of other voters, do not ask me to do so.

Q: How can I stop or avoid getting Cheetah comments?
It's very simple. Make sure that the majority of your post is in your own words, less only quotes which use markdown format ( put a > in front of the quote) and are fully cited. Don't just copy paste. A good guide on the reasoning behind this is here. TL;DR? Add value to what you share. And keep in mind that reposting is sharing, even if you own the content.

Q: Is Cheetah a magical bot that's perfect and always gets things right?
Who would have thought, but robots make mistakes! Cheetah sometimes posts links that make no sense. I've continuously been working to reduce the odds of this happening, but robots are not perfect, and Cheetah will never be completely accurate. Sometimes the content detection gives these "false positives". If there's ever a comment that's clearly broken, feel free to message or mention me, and I'll look into it.

Q: Who can control Cheetah / how can I contact someone who can?
@anyx is the creator. However, for best results (I'm not active 24/7!) you can reach out to Steemcleaners members. Head over to steemit.chat, in the steemcleaners-public channel, and someone will be around.

Q: I do posts that have a common format and get the message. Can I stop this?
If you're designing something like a weekly challenge or game, make sure to do it on a separate (designated) account. If you still get comments, message @anyx in steemit.chat.

Q: Cheetah is actually flagging me! What can I do?
If you believe it was a mistake, you can chat with someone in steemit.chat's channel steemitabuse-appeals. However, for cases such as identity theft and clearly unremorseful plagiarism/fraud, I don't give second chances. While some will not agree with this harshness, I personally believe there are enough good, positive, and genuine people here on Steemit that we do not need to entertain those who would only seek to defraud, harm, or take advantage of us.

Q: Is Cheetah or Steemcleaners official?
No: both are voluntary actions of community members. It's important to keep in mind that Cheetah is not an official part of Steemit. Should the community no longer want her, or I can no longer afford her, I will remove her (and I have been close to doing so in the past).

Q: What's the cost of Cheetah? What about her development?
I have had to sacrifice accuracy for price, as the cost of running Cheetah is actually quite high. At the current rate, Cheetah has a direct cost of about $150-$200 USD per week, with an indirect cost even higher -- and rising. The funding to pay for her currently comes from Steemcleaners log posts.

Development is ongoing, and has never stopped! I mostly aim to improve detection and reduce false positives (as I continuously receive negative flak for any mistake). While I don't expect a reward for the continued development, nor do I post updates about development (as the algorithm I have developed for content detection is effectively a trade secret, and thus sharing updates to it would be silly), I consider my role as a witness ( @anyx ) as the direct support. This keeps the project community driven, rather than sponsored. You can vote for witnesses here.

Have any more questions? Ask them in the comments and I will improve the FAQ!
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@fux ·
thank you for sharing! ive resteemt it ;)
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@geovanny1000 ·
muy buen contenido...gracias por compartirlo
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@danielfankhauser ·
Thanks check out my new Article about Ger30 Trading https://steemit.com/trading/@danielfankhauser/cfd-ger30-trading-strategy
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@introduce.bot ·
✅  @danielfankhauser, I gave you an upvote on your first post! **Please give me a follow** and I will give you a follow in return!<br><br>Please also take a moment to read [this post](https://steemit.com/spam/@pleasestop/introducing-pleasestop-here-to-reduce-comment-spam) regarding bad behavior on Steemit.
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@danielfankhauser ·
Thanks check out my new Article about Ger30 Trading https://steemit.com/trading/@danielfankhauser/cfd-ger30-trading-strategy
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@kennynneken ·
Very nice content thank you for posting.  I don't nearly use stop losses as much as I probably should haha.  Triangle patterns are one of the best to trade on and the easiest to spot thankfully!
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@danielfankhauser ·
Thanks check out my new Article about Ger30 Trading https://steemit.com/trading/@danielfankhauser/cfd-ger30-trading-strategy
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@lightreflections ·
$0.21
Hi ,
        Nice post , check my crypto blog aswell @lightreflections !
👍  , ,
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vote details (3)
@danielfankhauser ·
Thanks check out my new Article about Ger30 Trading https://steemit.com/trading/@danielfankhauser/cfd-ger30-trading-strategy
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@mentalmetal314 ·
Nice post Steemit loves new and original content this is a good one. Well done.
👍  , ,
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vote details (3)
@danielfankhauser ·
Thanks check out my new Article about Ger30 Trading https://steemit.com/trading/@danielfankhauser/cfd-ger30-trading-strategy
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@motiursoft ·
Donate 1 SBD or STEEM to @motiursoft to get your last post resteemed
Check out @motiursoft
👎  
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vote details (1)
@qsm86 ·
nice
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@danielfankhauser ·
Thanks check out my new Article about Ger30 Trading https://steemit.com/trading/@danielfankhauser/cfd-ger30-trading-strategy
properties (22)
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@ronaldpino ·
Hello friend, can you help me promote my post with a resteem please? https://steemit.com/mimascotayyo/@ronaldpino/primer-concurso-de-mi-mascota-y-yo
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@saus1 ·
Thanks for your insight! Great way of learning the basics of technical analysis.
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@shenlong ·
Hi, thank you for contributing to Steemit!

I upvoted and followed you; follow back and we can help each other succeed :)
P.S.: My Recent Post 
https://steemit.com/cryptocurrency/@shenlong/skyfchain-is-first-b2r-project-business-to-robots
properties (22)
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@danielfankhauser ·
Thanks check out my new Article about Ger30 Trading https://steemit.com/trading/@danielfankhauser/cfd-ger30-trading-strategy
properties (22)
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@stuntworks ·
Like the post, very helpful. How is it that you have 26 votes and only 0.44 cents. People should up their percentage or whats the point of Steemit. At least a penny, for God sakes.
👍  
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vote details (1)
@danielfankhauser ·
Thanks check out my new Article about Ger30 Trading https://steemit.com/trading/@danielfankhauser/cfd-ger30-trading-strategy
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