STEEMIT CRYPTO ACADEMY: SEASON2-WEEK2 HOMEWORK POST FOR PROFESSOR @stream4u - PRICE FORECASTING.

Hello steemit family, I am happy to present this homework post for profesor @stream4u as I write about Price forecasting.

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1 - WHAT IS PRICE FORECASTING?
Price Forecasting in simple terms mean the act of determining what the price of an asset will be after a period of time, whether long or short. In the crypto world, this is the prediction of the later price of a cryptocurrency or digital asset.
Just like many other predictions, Price forecasting is not done randomly or with a guest, but it is done after some studies or analysis, and this is the more reason it is called "Forecasting".
Some times, skills are needed to carry out this analysis as some experts take a close look at the historical performance of the price of an asset or cryptocurrency and then assume how it might turn out to be over a period of time. This sometimes involve calculations and examinations, but like other forecasting, you might not always be right.

2 - WHY IS PRICE FORECASTING NEEDED?
Price forecasting is very important and it is needed in many aspects of the crypto world especially by cryptocurrency investors and traders.
For future investments: Price forecasting is needed for future investments as by cryptocurrency investors asit can give them a glue of what might be their gain or what their investment will yield, whether it will be profitable or not.
Choice of investment: Price forecasting always help people in choosing where they want to invest as it can predict the asset in which its price will rise or fall in a short or long period of time.

3 - BEST METHODS FOR PRICE FORECASTING
Fundamental, Technical and Sentimental analysis arethe three basic methods of price forecasting or cryptocurrency price forecasting. The technical analysis makes use of the historical performance of the price of an asset, the price chart of such asset, market trend etc to predict the price of an asset. The fundamental analysis overlooks the above mentioned factors, but makes use of factors like balance sheet, performance of the management team of the asset, their plans etc to forecast the price of the asset. While sentimental analysis uses is being said in forums, news and so on to predict if the price of an asset will increase or decrease.
Looking at those three methods, Technical analysis in my opinion is the best method for Price forecasting as it can help a lot in investment due to its ability to identify market trends, the movement of the price of an asset and the chart of such price from previous to recent times.
In addition, fundamental analysis is also a good method, though technical analysis to me is the best.

4 - HOW TO DO PRIC FORECASTING (WITH THIS CRYPTO ASSET CHART)

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The chart above is called candlestick chart, this chart always help in pinpointing the fluctuations in the price of a crypto asset.
The red candlesticks shows the negative fluctuations during a trading session while the green candlesticks represent the positive fluctuations where the price goes up.
It is quite easy to forecast the price of a crypto asset protection cryptocurrency with this kind of chart as the basic things you need to do is to take a closer monitor of how the price fluctuated, the data behind, how long it went up or down.
Like in the chart used here, assuming it is the Bitcoin price chart, you can notice that the price is always going up after a short period of downward fluctuation, that is the historical performance of the price of that Asset and you can use this to predict that the price might go down after a long period of upward fluctuation.

Thanks for taking your time to go through my homework post.