Hello fellow steemians. It feels good to be with you once more. Welcome to another wonderful week in crypto academy. Today I will be writing on the homework task of @imagen who thrilled us with the topic Market Patterns and Blockchain Projects.

1. Make an investment. Show screenshots of the process. Why did you choose this cryptocurrency? What is it Market Capitalization? What is it position in the cryptoasset rankings? What is the objective of the project behind this coin? Who founded this coin? Show the roadmap. What is the specific purpose of the cryptocurrency?

First, I have to open my binance account and select spot market. I already have Usdt to invest there. At the spot market, search for Ada coin.

Then select the pair of ADA/USDT.

I am going to buy Ada with my Usdt.

When the screen opens, I set my buy limit price, selected 100% as I want to invest all my usdt. Then click on buy.

You can see, it is still on buy limit. Waiting for the price to come and trigger it.

The buy limit has been triggered and Ada purchased.

I have thus completed my investment in Ada(Cardano).

I chose to invest in this cryptocurrency because of the following reasons

1. Cardano is designed with defi in mind because its blockchain has the properties of being fast and scalable. Many defi projects can run on it at cheaper fees , therefore making it more popular than many other blockchains. These awareness will eventually result into price increase of its native token ADA.

2. Cardano is purposefully built for emerging markets. It has made various strides in ensuring blockchain technology is adopted in various parts of the globe. Thus entering these various markets can encourage the use of digital currencies in financial services without using cards.

3. Cardano makes use of proof of stake thus making transactions processing to be fast, processing up to 1000 TPS. This makes Cardano one of the cheapest blockchains to use compared to bitcoin and ethereum.

4. Cardano has so many team members working on its development and most actively developed project in the blockchain space. If they continue moving at this rate, they will be able to achieve their development roadmap. It has a strong development team,

The market capitalization of cardano as at the time of this writeup is $56,960,178,495.

See the screenshot below.

The ranking in coin market cap is 5th position*.

The screenshot below testifies to that.

The objective of the coin is basically to create a balanced and sustainable cryptocurrency ecosystem. It has as part of its objective to create a system that will enable cross-chain transfers, seeking to identify and develop ways by which institutions and individuals can access information and transaction identities such that it can enable the use of cryptocurrencies for trading and daily trasactions. This can be referred to as interoperability.

This coin was founded by Charles Hoskinson. He is a well known person in the crypto industry, having been among the co-founders of Ethereum which is currently doing very well in the crypto space. The founder also does his best to give updates on the cardano and its ecosystem.

The Cardano roadmap is divided into five stages or Eras.

◇ Byron Era

This is the foundation stage of Cardano. How it started by using research, peer review and a rigorous formal development model in creating the blockchain. During that stage too, it was listed into 30 exchanges, had about 490,000 community members, released 14 codes, attended to 61000 support tickets, etc.

Byron Era

◇ Shelley Era.

This is the second stage of the development of Cardano.

During this second stage, the development of the blockchain came into full swing. The journey began to optimize decentralization. The introduction of delegation and rewards system to encourage staking and mass adoption. This stage ensures that the network becomes more useful,rewarding and valuable for the users.

Shelley Era

◇ Goguen Era

This is the third stage of the roadmap, and it is dedicated to the easy operability of smart contracts..it will enable both experienced and inexperienced users to create smart contract on the cardano network. In this stage, the team will also work on making cardano accessible to a wider network of people. In summary, this stage presents steps to change and improve the abilities of cardano ecosystem.
Goguen Era

◇ Basho Era.

This is the fourth stage. It will bring about scaling and interoperability of cardano blockchains with other side chains. This will make it to become one of the most resilient and flexible blockchain platform. The stage will also introduce parallel accounting styles and will support many use cases within the network.

Basho Era

◇ Voltaire Era

This is the final stage of Cardano evolution. At this stage, cardano would have been fully decentralized and governance will be entirely in the hands of the community.

Voltaire Era

● Transfer of value.

The purpose of this coin is for it to be used as means of transfering value just like we use fiat currencies today. It should be used for for day to day buying and selling, as a means of payment for goods and services. To be adopted as legal tender by many people all over the world.

● Elimination of corruption and Ensuring transparency.

Since it is an open source blockchain, it will solve the problem of corruption, since all transactions will be visible for all to access and transparent. This is especially needed in public offices where people who serve should be held accountable for funds spent on projects.

● Create Economic opportunities.

It will also create economic opportunities. New business can run their own business, by havi g access to loans, borrowing from the platform at reduced interest rate. Business minded individuals will have access to the global market directly, removing the need for intermediaries or middlemen. It can also make investments in real estate easy, since it will now to be tokenized.

● Solve the problem of Inequality

Inequality comes about as a result of unfair distribution of resources or rewards. Thus it can resolve this problem with its tokenization and creation of digital identity. Making it possible for people to be employed remotely and choose a better employment for themselves. Employess will no longer be at the mercy of employers.

● Empowerment of Groups and individuals

This project can be a source of empowerment to individuals and groups who wait or rely on the ruling power to help them. It can give millions access or the possibilty to be in control of their lives.

2. Explain in your own words what the "Evening Star" pattern consists of. What is its hit rate?

The Evening Star is a pattern considered to be a bearish reversal pattern. This pattern is normally seen at the top of a bullish trend.
It usually consist of three candles.

1. Bullish candle

2. A second candle stick which is normally small but may be either bullish or bearish.

3. The third candle is a large bearish candle .

The first candle which is a bullish candle is an indication that the bulls are still in control of the market and are pushing the price higher.
The formation of the smaller candle also shows bullish domination but lessening influence in the market.
The last candle which is a bearish candle is clear indication that the buyers time is over. The bulls no longer have control of the market. That it is possible to have a bearish trend reversal.

From the chart above, we can see that the bullish candle was losing its dominance. The smaller candle went up a bit but could not push too higher, signifying that the bulls run is about to be over. Then this is finally confirmed by the long bearish candlestick.

This evening star is the bearish reversal version of the morning star pattern.

The hit rate for this evening star is at 72% success rate.

3.Explain in your own words what the pattern "Abandoned Baby" consists of. What is the percentage correct?

The Abandoned baby is a candlestick pattern, which also have a bearish and bullish pattern which looks like the morning or evening star but not exactly the same.

It is another pattern that traders look out for when they are trying to identify a reversal pattern in a trend.

The Bullish Abandoned Baby

It consist of 3 candlesticks immediately following a downtrend. It normally signals an end to a downtrend and a potential uptrend.
The candlesticks present in a bullish abandoned baby are

1. This is a large bearish candlestick seen during a downtrend.

2. This is a doji candlestick that have an opening and closing price that is almost equal. However, its opening price is well below the closing price of the bearish candle. There is a gap between the two.

3. The last bar is a large bullish candlestick that opens with a gap above the doji candlestick.

The Interpretation of this pattern is that there was a heavy selling off of the asset the asset and suddenly there was a doji candlestick signifying a tussle between the buyer and sellers, that the caused the opening and closing price to be almost the same. Then the doji was followed by the strong Bullish candlestick normally giving a gap from the doji to indicate that buyers have taken control of the market at least for the moment.
The abandoned baby is a pattern that is seen rarely in the market.

The bearish Abandoned baby

The bearish Abandoneded baby is a canddlestick pattern which signals to a trader that a reversal in the current uptrend is about to happen. It normally happens in rare occasions but is a strong indication of bullish reversals. It is usually followed by a bearish trend. Its rare occurences makes it not to be a popular candlestick pattern.

This pattern consist of three types of candle sticks

● A strong bullish candle in an uptrend.

● This is a doji candlestick that have an opening and closing price that is almost equal. However, its opening price is well above the closing price of the bullish candle. There is a gap between the two.

● The last bar is a large bearish candlestick that opens with a gap below the doji candlestick.

When this candlestick pattern reversal shows up, the direction reverses immediately. The success rate of this pattern is about 65% correct whenever it occurs though it is very rare to find this pattern in the market.

4. Perform analysis for 3 and 7 recent calendar days for Bitcoin Do you identify any patterns? Show screenshots

Using a 3day recent chart pattern, I was able to identify some patterns that were present in the chart. The patterns identified were

1. Bearish Engulfment pattern - This pattern occurs when the last bullish candle is totally engulfed by the next bearish candle.

2. Evening star pattern. -This has been discussed above. First there will be a large bulish candle indicating upward movement and then a small candle, which may either be bullish or bearish, then subsequently followed by a large bearish candle. This pattern indicates a bearish reversal is imminent.

3. Three black cows. -The three black cow is also an indication of the end to a bull run.

4. Railroad track pattern- This pattern is made up of two candle sticks. They must be of the same length in a parallel form like railway track. One of the candlestick must be a bullish candlestick, while the second must be a bearish candle or vice versa.
   When it appears during an uptrend, the bullish candle will appear first followed by a bearish candle. This also signals a bearish reversal is imminent. In a downtrend, the bearish candle appears first followed by a bullish candle of the same length, implying bullish reversal is imminent too.

On a 7day or weekly chart, I was also able to identify some patterns.

The patterns identified were

1. Bearish engulfment pattern- This pattern occurs when the last bullish candle is totally engulfed by the next bearish candle or erases it so to say.

2. Evening star pattern-just like explained above

3. Railroad track pattern - This pattern is made up of two candle sticks. They must be of the same length in a parallel form like railway track. One of the candlestick must be a bullish candlestick, while the second must be a bearish candle or vice versa.
   When it appears during an uptrend, the bullish candle will appear first followed by a bearish candle. This also signals a bearish reversal is imminent. In a downtrend, the bearish candle appears first followed by a bullish candle of the same length, implying bullish reversal is imminent too.

4. Three white soldiers- this indicates a strong price reversal in the market. Seeing the formation of the three large bullish candles in quick succession signifies bullish reversal.

Conclusion

Thank you @imagen for your nice lecture. I have learnt the things to consider while making a choice of which coin to invest in. I have also learned about the Abandoned baby pattern. This is my first time of hearing about it. I appreciate so well. Also learned about so other patterns and how to identify them in chart.