Steemit Crypto Academy Week 10 | Homework Post for Professor @stream4u - All about Price Forecasting

Good evening everyone, I am Lisa Zhen Hye from Seoul. Today I will take part in one of the lessons given to the Steemit Crypto Academy community. This time I chose the class given by professor @stream4u. The topic discussed in this week's class is Price Forecasting.

After reading the post given by professor @stream4u, I started to understand about Price Forecasting and now I will try to finish the homework that has been given in this class. Let's write .....

What is Price Forecasting?

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This is a basic question to open the curiosity that we have. Then what is Price Forecasting? Price Forecasting is a thought that is assumed based on various data and observations made to predict the ups and downs of the price of a crypto asset in the future. As we know, the crypto market is very volatile and always volatile. Therefore, good Price Forecasting will always be a major necessity for traders and investors involved in the cryptocurrency market. Usually they perform Price Forecasting analysis based on three main methods, namely Technical Analysis, Fundamental Analysis and Sentimental Analysis.

1. Technical Analysis, this method uses reading chart patterns, price movements, transaction volume, bullish-bearish, market trends and market support as analysis parameters. All these parameters are observed periodically from time to time until the current condition. Using this method, we can determine the right time to trade on the market.

2. Fundamental Analysis, this method does not look at current market trends because this method uses an approach to the background of an asset, such as the company's financial strength behind it, project mission, project whitepaper, company management, business partners, profit and loss balance and its current development. this. An asset that is supported by a company that is progressing will certainly be an investment destination for those who use this analysis.

3. Sentimental Analysis, this method is carried out based on the current public perception. Media and forums play a big role in bringing information, news and rumors to the public and this is one of the things that can affect the current state of the market, as was the case with Dogecoin last week. By sharing a tweet, Elon Musk managed to make Dogecoin prices soar until recently.

Why Price Forecasting is Needed?

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Of course Price Forecasting is needed and even very important for us before deciding to enter the market and trade. There are many factors to consider and no one wants to lose because all of them are looking for profit in the market. In addition to making a profit, a good Price Forecasting can also prevent you from losing in the market.

Therefore Price Forecasting is very important in determining what steps we should take and determining the right time. Besides being needed a good strategy, we also need to be patient and not greedy when in the market, the most important thing is to always think realistically in every condition and analyze it well. You can use these three analysis methods according to your planned investment / trading needs.

The Best Methods for Me

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Each method of analysis has its advantages and must be used at the right time. Since I often trade for a short period of time, I think the best method I can use is Technical Analysis. By doing this analysis, I can follow market trends based on the chart patterns that form on an asset that I will be trading. By doing a brief analysis of this method, I can usually make a small profit from each asset I trade on the market and most importantly no loss. I trade several assets at once and make a small profit on each one. Those small profits will be big if you do it on many assets at the same time.

Technical Analysis based on Graphic Chart

https://www.coingecko.com

Here I will try to predict the price of SBD (Steem Backed Dollar) for the next week based on the price graph in the last month, as in the picture above. Keep in mind that we always buy assets when they are in the support zone and sell them in the resistance zone. Cryptocurrency prices always fluctuate, when the chart pattern becomes a double bottom (support zone) then you should buy because the price will come back up a few moments later and vice versa. When the chart pattern becomes a double top then you should sell the asset because the price will drop for a while later.

Based on this graph, I predict that SBD prices will increase next week because it has experienced a deep support zone this week. I predict the price will be in the range of $ 7.5 - $ 8.5 for the next week. However, these prices did not immediately reach this stage because SBD prices still had the possibility of fluctuating on a normal scale for the next 3 days. Currently, SBD is also in a positive trend.

I'm always waiting for a review from you and thank you for reading my post.

My Price Forecasting Result is Correct (Edited after 2 Days)

Previously, I had done a price forecasting on the SBD price for the next week as I explained above. I predict that next week's SBD price will be $ 7.5 - $ 8.5. Based on today's latest prices, it is evident that the SBD price is right as I predicted and is happening even faster. Today the SBD price reached $ 8.82 and only took two days after my prediction. My predictions have been proven correct.