It is such a honor to participate in homework task given by @stream4u in his week 2 class at @cryptoacademy. Below is my homework about price forecasting which helps investors about their future investments. So let's get started,

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Question 01

What is Price Forecasting?

First we have to look into what is actually forecast is? Forecast is given by using past scenarios and numbering produced previously. People sometimes get into trouble between forecasting and prediction. Forecast is given after a complete analysis of the product's past and current situation whereas prediction is something given instinctively that someone just gives a kind of opinion that this will happen! but he has nothing to prove. So price forecasting is somehow defined as,
Price forecasting is the prediction of future pricing of any product or assets; either digital or physical assets. It is used by the investors to invest in long term or short term variables. Different factors like trends, demand and supply, pricing and quality are involved in order to determine upcoming and future of any product.

Question 02

Discuss on why Price Forecasting is needed?

Price forecasting is somehow the most important area for any investor. It tell us about the future trends of market and helps us to understand about any coin price and its market through various ways or techniques.

If anyone wants to invest in any coin or any asset, he first learned about the ups and down of these assets through forecasting techniques. It also provides short term buying or selling signals so that an investor can either get profit and release from the market or retain his position for future aspect.

Question 03

What Methods are best you feel for Price Prediction/Forecasting?

There are three main analytical ways to know about price forecasting i.e technical, fundamental and sentimental that are describe below,

What is technical analysis?

It is completely based on statistical review of product, its price and market volume. It helps to give short trading signal based on past price volumes, supply and demand of product. It can also be determined by evaluating charts and graphs following the price trends

What is fundamental analysis?

Fundamental means basis, like a company is a basis where different products made and complete ingoings and outgoings based on company's performance.
Fundamental analyst uses this technique to forecast future of any product. They look into company assets and gave a statement whether the chart will follow upward trend or downward trend.

What is sentimental analysis?

It is a very irregular or may be called unforecastable that it directly connects to uncertainity or popularity of any company. The analyst use newspapers, company's economical situations, political situation and discussions regarding the market issues lead them to a final decision for investor.
If we look into the example of it, Elon Musk founder of SpaceX and CEO of Tesla motors who is right now the second richest man in the world had tweeted just two words 'USE SIGNAL' following the disruptence caused by a messaging app Whatsapp who had changed and published his new policy. Minutes after Elon musk tweeted investors rushed in and buys the shares of a small medical device company Signal Advance. INC, here's the funny part that Elon Musk tweeted about Signal a messaging app whereas people misunderstood it and bought the shares of wrong company and the market value of the signal advance increases sixfold.

Question 04

Take any Crypto Asset Chart graph and explain how to do Price Forecasting? OR Take any Crypto Assets Chart graph & as per its current price tell us what will be its future price for next 1 week or 1 month? You can predict for any direction up or down but explain it properly on what basis you have predicted the price.

Ans: Here we are looking price forecasting and technical analysis about NEO coin as the volume seems good and their resistance and support show good entries and exit of market, as am using 9 (EMA) indicator it is giving good basically i uses 21 in day trading but 9 (EMA) shows good wicks and shadows too.

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Basically as above screen shot shows 4 indicators but 9 (EMA) giving us good predictions that how much bounce it takes and hit main and it reaches the target in good manner and my indicators help me alot that's what technical analysis helps alot.

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As above there you can see entry and exit from market entry price is 56 and exit price 120 and it shows in one day trading and you can see how 9 EMA is giving good trade and technical analysis benefits are just below you how I interprets the coin in in this chart below.

Here every buyer buys on support because everyone makes panic and when the price seems to be at ceiling means touches thee resistance exit the market where good traders makes more profit as this analysis was done 2021-4-5 in one day trading till 2021-4-18.

Conclusion

Through the following content we conclude that in order to invest in either crypto currency or any other assets we have to first analyze the future of following product by using different technicalities. Price forecasting can help user to understand about the trends of charts and help him analyze a best result for his future investment.

Note: All images used were atken from free sources and source citated below every image.

That's all from my part I hope that you will give a review regarding this homework.

Cc.

@stream4u
@steemcurator01
@steemcurator02