Steemit Crypto Academy Homework Task Week 10 Post For @stream4u

I am thankful the steemit team who has given me a chance of learning about crypto world.

Honorable @stream4u is a professor whose method of delivering lecture (with simple and easy words) is my favourite.

I have read the lecture in full detailed and I have tried my best to answer of the questions given by him.

Q-1. What is Price Forecasting?

With so many mathematically formulas, the price forecasting process can be done through charts and graphs on technical basis.
In short and simple way, we can say that the price forecasting is a future prediction of price of any crypto asset. If we are able to analyze chart pattern and direction of graph then we can predict future price better and that can help us to invest for long term and short term in crypto currencies.

Mostly people who trade in crypto currencies use three types of analysis which are following.

Technical Method
Fundamental Method
Sentimental Method

All the people always use these three types with their expertise and skills and predict price to take benefits to invest/ trade in crypto currencies.

1. Technical Method:

All the technical analysts observe the market trend, bearish and bullish trend, market support, chart and graph and movement of price. When investor/trader is satisfied for investment so they invest and get profits for short term or long term.

2. Fundamental Method:

In this way, trader know just basic things about crypto company and team performance. They like to look the following things and try to get answer of these questions.

Who is working behind it?
What is the role of the team management?
How much supply is shown in the market.
What is their mission in future?
What products, they are dealing in?
What is showing their weekly or monthly balance sheet?
What is company profit, loss and Depth ratio?

When the trader finds the satisfactory answer of the above questions, then he is ready to invest in a company. In fundamental method, traders do not look the current market trend.

3. Sentimental Method:

In sentimental analysis, there is possibility to get profit and loss in the market due to volatility. Market trend could be positive, negative or neutral. Through various forums of news, discussion and media, trader keep an eye and invest in crypto because of high volatility in the market. Traders always depend on media news to make investment in the market to get profit.

Q-2. Discuss on why price forecasting is needed?

If a trader want to invest for profit and increase his capital, then it is mandatory to look price forecasting and get those points which will support in getting profit.

A trader can not get clear idea of (buying or selling) at proper point without price forecasting. Through price forecasting, a trader is absolutely aware of profit and loss. After analyzing fundamentally, technically and sentimentally a trader can take advantage and understand market trend easily. In this way, a trader can save himself from loss and become a good trader in the world of crypto currencies.

Q-3. What methods................... prediction/forecasting?

According to my view, technical analysis is a good way for price forecasting and it will be very suitable for every trader/investor to invest. Fundamental analysis can also support for good trading.

Sentimental analysis belongs to media news that may not be authentic but it may be useful for some extent for trader and investor because people just see the trend of people.

I think in technical analysis, a trader/ investor can judge the performance of team and company. But if fundamental analysis is done that can be more useful as it shows the team's mission in future.

Q-4. Take any crypto asset chart...........on what basis you have predicted the price.

In above screenshot from the first support the price of XRP trend upward and remains high and then downward and after volatility the price touch the second support on the line. At this price of XRP is only $0.50. Resistance has been shown before both the supports.

Looking above the screenshot, after two supports the price is shown in volatility condition and now it is buy time. So after buying the target is set to $0.90 price of XRP. After awaiting for some time, now it is happy news for buyer as it hits the given target price and the trade is ended.

Now it is time to trade again as market is showing uptrend price of XRP. In the screenshot it is now high and let's trade can be ended and the market is now downward so the buyer is ready to make new buy for an other trade.

Conclusion:

After all the discussion, it is now clear that in trading price forecasting is very important and without it, a trader jumps into the dark hole where he does not know what the things are there to face.

As far as time is concerned during trade, it is a good advice for everyone by respected professor @stream4u to set time duration from 30 to 45 minutes.

Special Thanks To:

@stream4u

Best Regards:

@azamrai