Steemit Crypto Academy | Course By @stream4u - All About Price Forecasting// homework done by @davchi

QUESTION NO. 1 ANSWER

PRICE FORECAST: This Is a partterned systematic mechanism which could be by personal instinct or that is gained or learned as a matter of trial and error.
Nevertheless, we can use this system to put checks into the future price of certain assets which could be in the short or long term period, for the maximization of profit. That is given a general view.

But on the contrary, given the Cryptocurrency for instance which is volatile in nature, there are many machanisms in price forecast which is not limited to the resistance and support levels only but also on so many other means. but based on the content of this context, we can deduce that support and resistance levels are good measures for probably short term price forecast and perhaps the long term forecast.

QUESTION NO. 2 ANSWER

WHY PRICE FORECAST IS IMPORTANT:
As we all know that every business has its own strategy, like the Trading of the crypto currency is not without a strategy.
So let's look at the importance of forecast.

1.MAXIMIZATION OF PROFIT: As everyone knows that any business man is absolutely out for profit, a good knowledge of price forecast is very important in maximizing ones earnings in trade.

2.CONFIDENCE IN TRADES: A reasonable insight in price forecast, will give an individual the the confidence to trade despite the current trend of assets.

3.REDUCTION IN LOSSES: a good forecast of the price of assets will absolutely help an investor in the reduction of trade losses due to the volatile nature of crypto currencies.

4.HIGHER RETURNS IN INCOME VALUE: maintaining a good forecast ability will definitely result to an investor having a high yield of returns after trade.

5.HIGH STAKING: it is very paramount to have a good knowledge of price forecast which in other ways will give an investor the boldness to plunge a reasonable amount of his asset into trade as to have a high returns from trade.

6.MARKET CONTROL: really despite the volatile nature of crypto currencies, an investors ability to forecast the prices of assets will put him in charge of the market, not minding the current trend of the asset in question.

7.IT LIMITS UNREASONABLE STAKING: For instance a good forecaster who knows that an asset like the Bitcoin will rise in the nearest possible period will not waste his time keeping his asset in his wallet or even investing in a low yielding assets since he will be making a good returns if he should be investing in the Bitcoin, so it eliminates the possibility of irrational staking.

QUESTION NO. 3 ANSWER

Price forecast is needed but not limited to these aspects alone, they are viz:

1.IT IS NEEDED TO KNOW THE FUTURE VALUE OF ASSETS: We really need price forecast to scrutinize into the future values of assets

2.TO MAINTAIN PROFITABILITY IN TRADE: Every investor needs good forecast to keep making profit, because without a good forecast, there will be high level of trial and error, there by causing intermittency in an investors rate of making profit.

3.TO ELIMINATE LOSSES: we need a good price forecast to reduce the rate of losses in trades despite the level of volatility of crypto currencies.

QUESTION NO. 4 ANSWER
THE BEST METHODS FOR PRICE FORECAST

For me i would take the fundamental and Technical Analysis as the best method for forecast, since the fundamental method goes deep into understanding the value of a particular company which tric kles down to the volume of profit the company can generate, so I consider this method basnone of the best strategy compared to the sentiment analysis.
Secondly, I would also prefer the technical analysis as one of the best method, because just merely looking at its gesture which investigates not just into a company's current value but it goes deeper into examining the past market behaviour of Customer participants and using it to forecast into the future price of certain assets as we truly understand that there is the tendency for history repeating it self, nevertheless this very method is worth it in that it makes use of certain technique in solidifying trade like support and resistance level and also chart patterns which can aid a favourable trade.
And i really believe these two methods to be the best methods for making predictions. Because if one can carefully analyze the worth of a company and can also scrutinize the past and future behaviour of the participants of such systi or market he can confidentially forecast the trend of such a company or system.

QUESTION NO. 5 ANSWER

I wish to carryout my analysis using a pair of assets using the steem against the leading crypto Bitcoin.

Here we can see below the support and the resistance level of steem although I placed it against the BTC, that is using the the technical analysis where i deployed the chart pattern, EMA RSI and the MACD , although this is not our bone of contention, but am trying to bring it to the lime light of past market behaviour.

Nevertheless, let's see some other reactions from previous levels below, here it took the STEEM asset 4 months to climb from support to resistance level, that is from December till April as I indicated.

But since am taking a weekly analysis of the STEEM price, although currently it is at the resistant side with prive currently at 0.00001680 STEEM to BTC.

So since, from observation it takes a longer period for assets to rise than they fall which is not restricted to crypto currencies as well.

Now currently that the steem is in down trend direction, which represents a dicrease in its price, there is every tendency that in the next one week, the price will continue in a depreciating trend and value because it has reached its resistance level, that is going by the demand of the technical analysis of price forecast, let's just see below.

Now at this point, i can now state that the price of STEEM to BTC will drop in the next one week (but I'm just using the BTC to forecast the steem price in the next one week not actually that I'm trading with it)
So from this view, I wish to make a final conclusion of the price of STEEM to BTC.

So from here, I can state that the price will fall steady from 0.00001680 STEEM TO BTC till at a point within 0.00001123 STEEM TO BTC. In the next one week. This also based on the technical analysis using the current chart pattern.

IN CONCLUSION
In forecasting the prices of assets into either the short or long term period strictly required the deployment of these analytical methods which are sentimental, fundamental and technical to maximize eanings in every trade but more especially the combination of Fundamental and Technical analysis for efficiency and proficiency in every trade.

I wish to apprentice professor @stream4u for putting me on the lime light of this research, thanks.

Cc: @stream4u