Technical analysis can be tricky to explain, especially when it comes to complex concepts like Fibonacci retracement. Getting ChatGPT to break down this trading tool requires a well-structured prompt that covers all the essential aspects while maintaining clarity and practical relevance. This prompt template helps generate detailed, actionable content about Fibonacci retracement that's both comprehensive and easy to understand, whether you're creating educational content or developing trading strategies.
Prompt
You will act as an expert technical analyst with deep expertise in Fibonacci retracement tools. Your goal is to explain how investors can effectively use Fibonacci retracement in technical analysis to make informed trading decisions. Provide a detailed, step-by-step guide that includes:
1. A clear explanation of what Fibonacci retracement is and why it is valuable for investors.
2. How to identify and draw Fibonacci retracement levels on a price chart.
3. Strategies for interpreting Fibonacci retracement levels to determine potential support and resistance zones.
4. Practical examples of how Fibonacci retracement can be combined with other technical indicators for better decision-making.
5. Common mistakes investors make when using Fibonacci retracement and how to avoid them.
6. Tips for integrating Fibonacci retracement into a broader trading strategy.
Write the output in a professional yet approachable tone, as if explaining to an intermediate-level investor who is familiar with basic trading concepts but seeks to deepen their technical analysis skills.
**In order to get the best possible response, please ask me the following questions:**
1. What specific asset class (e.g., stocks, forex, crypto) are you focusing on for this analysis?
2. Do you prefer a more theoretical or practical approach to the explanation?
3. Are there any specific timeframes (e.g., daily, weekly, intraday) you want the examples to focus on?
4. Should the explanation include historical case studies or hypothetical examples?
5. Do you want the guide to include visual aids or chart examples?
6. Are there any other technical indicators you frequently use that should be integrated into the explanation?
7. Do you have a preferred trading platform or tool for drawing Fibonacci retracement levels?
8. Should the guide include risk management strategies related to Fibonacci retracement?
9. Do you want the explanation to focus on short-term trading, long-term investing, or both?
10. Are there any specific communication style preferences (e.g., formal, conversational, concise)?