Crypto Academy Week 10 - Homework Post for @stream4u | All About Price Forecasting || by @chilaw

Hello fellow students and Prof @stream4u, this my entry for your home in Price forecasting.

What is Price Forecasting?

This is an important instrument implored by financial experts to determine the futuristic price of a given asset be it a commodity , cryptocurrency, fiat by considering some variables, factors and influencers within its cycles. This resultant effect of this instrument has helped in giving a prospective investor a line to follow before investing into such assets after considering if the asset would follow a beerish or bullish trend as anticipated. Most especially, an asset is been considered safe for an investor or trader after he must have weighed some key market influencers such as the seasonal demand of this product, the behavioral demand in the market and product characteristics.

In addition to what Prof taught us, there are three (3) major underlying parameters taken into cognizance while forecasting the price of an asset which are follows; The Fundamental analyses; which basically looks at the product performance in the past and present, The Technical Analyses;which uses various market indicators to track products viability and The Sentimental analyses which is a product of what was and is said about the product especially through the media. All this put together by a forecaster, gives him a direction and confidence to invest on a particular product.

Discuss On why Price Forecasting is needed

Price forecasting without being told is the eagle eye of every investor on his quest to invest on any given product. The need for every investor to get involved in price forecasting cannot be over flogged since it lays the bed in which he can conveniently lay and trade.

By choosing any of the analytical parameters which are all geared towards profiteering, it helps him to make an informed decision before, during nd after trade. This decisions places him above so many unnecessary disasters which would result in asset loss, but with this aforementioned aggregated data/information, he can be swift in making decisions tailored towards profits.

Price forecasting also helps an investor to make be readily available in making hasty decisions when the trend shows up since he's already aware of such positions and product trend. An investor in this case would be more of being proactive in handling all issues arising from said product than be reactive.

Conclusively in this, price forecasting positions an investor to take advantage and be incharge of the product market so as to maximize his chances of making profits from it.

What methods are best you feel for price prediction/forecasting

For me, the three mentioned analytical parameters would be best for a method to adopt towards price forecasting.

• Technical analyses: This tool basically narrates the performance of an asset over a period of time by using some of the indicators and patterns available over time. Product support and resistance and beerish and bullish patterns and overall price movements are some of the trends to be considered here.
• Fundamental analyses: Just as the name entails fundamental, the investor is seen to check out the product whitepaper to ascertain if the roadmap designed for it is one that can help this product be sustainable in the market. Also the company floating this product is also checked by the investor to know if its financially stable to sustain its viability and growth over time.
• Sentimental Analyses: This tool specially deals on the speculative analysis seen from media and some holders of this coin. Some of the major share holders may make a speculative utterances which may be followed or affect the market trend. I see assumption and speculation drive this parameter. News from veritable channels too can also seen as useful too in making such price forecast for a product.

Take any crypto asset chart graph and explain how to do price forecasting. OR take any crypto asset chart graph and as per its current price tell us what will be its future price for next 1 week or 1 month? You can predict for any direction up or down but explain it properly on what basis you have predicted the price.

I will be showing us some illustrations from this chart between this TRX/BTC on Price forecasting.

(Resistance chart)
From the screenshot above I was able to spot three resistance points showing that the investor would be able to know the trend and direction this market is headed too for quick investment and exit for short term positions who wants to make quick gains.

At this point the trader knows the three different resistant points the market can go and having seen the support of this trade also below, I think it would be wise to know when to maximize profits.

(Support chart)

Having known the resistance and now the support base, the trader should be able to make quick gains given that that the entry position is below the two positions (support and resistance). But in cases where your buy in is higher than support, the trader should know the exact point to claim profits before resistance.

(Breakthrough from resistance)

This shows that the price of this coin would definitely go up and investors who already made some entry position may smile as it continues to be bullish.

CONCLUSION
Price forecasting is indeed a veritable tool/instrument to be used by investor or trader who actually wants to take advantage of the market and maximize profits. Considering the different analytical instruments, it is at the investors discretion to choose which is convenient for him at that point in time since the sike aim is making profits.

Thank you everyone for reading through my homework task for Prof @stream4u.