Crypto Academy || Season 3 || Week 5 - Homework Post for Professor @imagen
Thanks to Professor @imagen for giving us this great lecture on Market Patterns and Blockchain Projects. After studying notes and reading this week's topic, I have decided to review what I have learned in my homework task.
1. Invest. Show screenshots of the process. Why did you choose this cryptocurrency? What is Market Capitalization? What is its position in the crypto asset rankings? What is the objective of the project behind this CoinCoin? Who founded this CoinCoin? Show the roadmap. What is the specific purpose of the cryptocurrency?
There are many digital coins available, but I prefer to invest in ADA based on the following reasons,
Cardano is the name of the blockchain, and the cryptocurrency is called ADA. It is a Defi project which Ethereum co-founder Charles Hoskinson created in 2015. ADA, which is the cryptocurrency, was launched in 2017 to be another version of Ether. ADA has been well for quite some time now in the market. Since ADA is a decentralized currency, it is therefore mined by the validation of blocks based on the number of coins the miners hold. This consensus is called Proof of Stake(PoS). One major thing that determines the success of a currency is its strength; Cardano has a strong team of engineers and programmers who works day and out to ensure the success of CoinCoin.
Cardano has a market capitalization of is $$41,578,763,180. This can be seen below,
Cardano is ranked 5th on the coin market cap. This can be seen below,
Just as any other project has objectives, so as Cardano coin. Below are some of the objectives of the Cardano Coin,
One of the main objectives of Cardano Coin is to solve the high transaction fees and the slow network in the Bitcoin and Ethereum blockchain networks. This scalability problem happens when a large number of transactions are being made on the network.
Another objective is to provide a cryptocurrency environment where there are balanced and sustainable inter-blockchain transfers.
As I have mentioned earlier, Coin was founded by Charles Hoskinson, who is also the co-founder of Ethereum.
The roadmap of the Crypto project is a summarized plan for the project, thus the plans to follow in other to make the CoinCoin a success. These five stages are,
Byron Era. This Era has to do with the starting point of the CoinCoin. The necessary research, review, and formal development employed to create the blockchain and the CoinCoin.
Shelley Era. This second stage is making the project more decentralized. This is done by introducing various rewards systems; these include delegation rewards and other rewards to encourage more to participate in staking and mass adoption of the CoinCoin.
Goguen Era. This stage is also known as the smart contracts era. This stage will make it possible for proper to create a smart contract on the Cardano network. This stage also ensures the improvement of the network to expand the project to a whole lot of people.
Basho Era. This also goes by the name "the scaling stage," which involves the scalability and interoperability of Cardano blockchains. This feature will ensure that there are low transaction fees and high transaction rates. This will also make it possible to make an easy transaction with other blockchain networks.
Voltaire Era. This last Era is also known as the Governance stage. This stage makes sure that the Cardano is decentralized and the people are given the full mandate to manage their assets and other blockchain-related operations on the network.
Medium of transaction. This purpose has to do with the CoinCoin been used for day-to-day transactions. Thus, buying and selling just like fiat currencies such as Dollar, Euro, etc.
To get rid of corruption and Ensuring transparency. The decentralized nature ensures that users manage their operations without the need for a middleman. This helps to eliminate any form of corruption in our daily transactions.
Boosts Economic opportunities. One of the [purpose is to eliminate any form of international trade restriction either between state to state or country to country. Individuals can get loans to start their businesses or to expand their Bussines. Businesses transacted on the platform will help people transact without third-party or mediators to avoid unnecessary fees.
2: EXPLAIN IN YOUR OWN WORDS WHAT THE "EVENING STAR" PATTERN CONSISTS OF. WHAT IS ITS HIT RATE?
The Evening Star is a candlestick pattern that can easily be seen at the top of a bullish trend(upward trend); this is also known as a bearish reversal pattern. The Evening Star pattern is made of three candlesticks, these includes,
Large bullish candle. This candlestick shows that the bulls are in control of the market, making the market move in an upward direction.
Either bullish or bearish candle. This candlestick can be either bullish or bearish with a small body. This candle with a small body shows that the bulls are gradually losing control and losing influence on the market.
Large Bearish candle. This stage shows that the bulls are no longer in control; hence there is a possible bearish trend reversal at this point.
According to Bulkowski, The hit rate for the evening star pattern is at a 72% success rate.
From the AAPLUSD chart sown above, The big bullish trend shows that the bulls control the market. The follow-up candle with a small body signifies that the bullish trend is coming to an end. The end of the bullish trend leads to the formation of the bearish candled; hence the bears are in control, causing the price to move in the downward direction.
3. Explain in your own words what the pattern "Abandoned Baby" consists of. What is the percentage correct?
The Abandoned Baby is a Japanese candlestick pattern. This pattern looks like the morning or evening star, but they are not the same. Traders use this pattern to point out reversal patterns in a trend. This Abandoned baby pattern has a bearish and bullish pattern; these patterns consist of a gap and then one doji in the candlesticks.
According to Bulkowski, The abandoned Baby pattern 65% success rate.
Source
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The formation of the bullish abandoned baby candlestick pattern shows that the market is going into a reversal from a downtrend into an uptrend. The following features can identify this pattern,
- A large bearish candlestick
- A Doji candle that has a close gap below the first large bearish candle.
- The last feature is a large bullish candlestick that opens above the Doji.
The large bearish candlestick shows that there has been an oversold in the market, and the Doji candle shows that the is a struggle between the bears and the bulls, causing the opening and closing price to almost be the same. A large Bullish candlestick follows this, showing that the bulls have taken control over the market. The large bullish candle gives a gap from the Doji.
Source
This candlestick pattern shows that there is a reversal of a bullish trend into a bearish trend. This pattern hardly happens, which makes it unpopular in the crypto market. This is pattern is formed by
- A large bullish candlestick
- a small Doji with a gap that closes above the first large bullish candlestick.
- A large bearish candle.
There is an uptrend market reversing into a downtrend any time the abandoned baby pattern is observed. According to N. Bulkowski, the abandoned baby pattern has a success rate of 65%.
*** 4: PERFORM ANALYSIS FOR 3 AND 7 RECENT CALENDAR DAYS FOR BITCOIN. DO YOU IDENTIFY ANY PATTERNS? SHOW SCREENSHOTS***
The mark on the chart above shows the formation of Bullish three-line strike. These three green candles are bullish, and the last candlestick had a large bearish candle. The bearish has erased all the marks made by the three bullish candles.
The three bullish candles were formed due to the bullish having control over the market. Thus, there was an overbought o the asset. The big bearish candle was also formed due to a quick oversold of the asset. This oversold is normally temporal but not always. Since the oversold was done by traders who think the price will continue to rise, buyers continue to buy the asset making it recover from pushing the uptrend.
ANALYSIS FOR 7 DAYS CHART ON BTC
The marked part of the chart shows Three white Soldiers; this pattern consists of 3 continuous bullish candles. Each candle opens within the real body of the previous one and also closes above the previous candle.
This pattern shows the reversal from a downtrend to an uptrend. Hence more of the asset is being bought.
Conclusion
As any traditional trading involves risks, so as crypto trading. Therefore, it is advisable for traders, especially beginners, research into the crypto they want to invest in before investing. Tools like technical and fundamental analysis can play a major role in their analysis.
Fundamental analysis deals with studying the roadmap, whitepaper, and gathering any other basic information about the asset you want to invest in. Technical analysis has to do with using indicators and charts to analyze the asset to get the relevant market info about the asset before making amove into investing.
Thank you for vising my post
Gracias por participar en la Tercera Temporada de la Steemit Crypto Academy.
Realizastes un gran esfuerzo, sin embargo, te falto mostrar los screenshots de la inversion que realizastes al comprar/cambiar ADA.
Continua esforzandote y espero seguir corrigiendo tus asignaciones.