Crypto Academy Week 10 - Homework Post for @stream4u | by @aniqamashkoor

Hey everyone. This is @aniqamashkoor I hope so you all will be doing well and will be learning alot from this crypto academy season 2 lectures.

This is my homework post for professor @stream4u

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Question 1: What Is Price Forecasting?

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As it can be seen from the term forecast means to predict or foresee and it is compounded with the term price, that means price forecasting is to predict the worth of an asset. It is done to observe the future value of an asset or crypto. Price forecasting is defined as the procedure to analyze the market on the basis of previously collected data, and then to predict the value of that asset or currency future. It plays an important role in trading.

It can be done by considering the information and data collected from previous weeks and months. Before investing in any cryptocurrency or any other asset, every trader make alot of research just to know the future of that currency and to decide whether they should invest in it or not.

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Question 2: Discuss on why Price Forecasting is needed

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Price forecasting is very important and much needed. It is the process to observe the market deeply with different aspects just to analyze the condition of the market and value of the currency for making investments. Before investing, price forecasting is done to make sure that the investments you are going to make will give you a good profit or loss. There are two trends in the market the uptrend or the downtrend or you can say the market is of two types for investors bullish or bearish respectively. Every trader wishes to make maximum profit from his investments so price forecasting is done in order to make things clear and give security.

For a successful and profitable investment, price forecasting is very important and every trader should spend a good time over it to be safe from loss. It is very important to do price forecasting in a correct manner to make the most profit of your cryptos invested and to be protected from big losses.

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Question 3: What Methods are best you feel for Price Prediction/ Forecasting

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Price forecasting can be carried out with the aid of three methods that are;

1. Technical Analysis
2. Fundamental Analysis
3. Sentimental Analysis

TECHNICAL ANALYSIS:

The study and observations are done with the help of charts and other tools that help in indicating the direct price for the future. In this analysis, we consider the history and previous data of an asset. It is carried out by studying the price movements plotted in a chart and it has become easy because no special education or knowledge is required to read through these 2-dimensional charts in which the changes are plotted and every individual can do this very easily by making little study. This analysis is the most convenient and likely used method to check the market.

In trading terms, technical analysis is that collects information by checking the data and it gives the opportunity to study the statistical changes by studying the pattern and history of an asset.

FUNDAMENTAL ANALYSIS:

In fundamental analysis there is no concern with the pattern or recent trend of the asset, no history of crypto is bring in knowledge. But the strategy and planning of the company are brought into consideration to know how they have planned up for the growth of their asset. As compared to technical analysis, in this analysis the investor does not check for history or present statistics of a cryptocurrency.

A deep and detailed analysis is carried out by studying about supply and demand chain, in this analysis, the investor considers the quality of a crypto company for trading and investing his money. The final goal of this analysis is to ensure the security of the asset by considering the company profile and white paper history of a cryptocurrency.

SENTIMENTAL ANALYSIS:

Sentimental analysis is all linked up with human personality and thoughts. By the term sentiment, we got the meaning of emotions, the change in the stock market due to sentiments of people investing in the market. This analysis is based on human behavior and short-term sentiments and is not very helpful in price forecasting.

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Question 4: Take any Crypto Asset Chart graph and explain how to do Price Forecasting?

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To do the price forecasting and technical analysis, I have taken charts from coindesk of dogecoin DOGE/USD

Below are the daily, monthly, and weekly graph of the dogecoin that I have taken t to demonstrate the technical analysis

Looking at these graphs we can easily do the price forecasting of the dogecoin. We also saw the huge price hike in this coin's chart due to technical forecasting as Elon musk gave a hint towards the success of this coin. It's a matter of one's vision and decision-making. And the amount of risk that he can bear.

In my opinion, buying the coin would be a beneficial decision. When the market arises and BTC gets stabled. There is a huge chance for this coin to go high up again.

CONCLUSION:

I have learned about price forecasting and methods to do price forecasting. Among these methods, technical analysis is the most used and easy method to carry out price forecasting. Price forecasting is very important and must be done correctly by keeping all the things in mind.

from @aniqamashkoor

Respected professor; @stream4u

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