Crypto Academy Week 10 Homework Submitted To Prof. @stream4u. Price Forecasting

Hello Prof. @stream4u thanks so much for this week's lectures, i have learnt so much from the lectures and here is my homework post.

Price forecasting is simply the prediction of the future market price of an asset.

This prediction method uses certain present-day market factors like how currently the asset is trending in the market, the current price of the asset, how demanding the asset is currently, how many suppliers are currently supplying the asset and some other factors which will determine the rise or fall in price of the asset.
This factors helps a trader or an investor to analyze the optimal time to invest in an asset

There are three basic ways traders predict the market future value of an asset, they technical analysis, fundamental analysis and sentimental analysis.

Technical Analysis
This is a price prediction method mostly used by traders and investors to predict the future price of an asset by studying and understanding the previous market data of that asset, upward and downward movement of the price of that asset, chart patterns of the asset, going long and going low trend of the asset, market resistance and support.

Fundamental Analysis
Here, investors uses the financial strength of an entity and not just price movements do their analysis before investing in that entity.
By financial strength, I mean all the economic wellness of the company, like from what Prof. @stream4u mentioned in his lectures, which are how the entity perform, implementing new products, and their market supply, weekly-monthly balance sheet, Company Profit-Loss-Depth(Borrow) ratio.

Sentimental Analysis
Sentimental analysis focuses on the financial expression of an asset in the market. By expression, I mean the positive trend of an asset (bullish), the negative trend of an asset (bearish) and the neutrality of an asset in the market. Thks expressions are gotten news update, either on television, newspaper or any news media.

Why Price Forecasting Is Needed.
Price forecasting is of great essence for a trader or investor because it will help them know when to trade or invest, when not to trade or invest and how much capital they need to unleash into the market. It is worthy of note that crypto trading is profittable but of high risk. And also risk taking is of essence in trading. Every trader must have the courage to risk atleast 1% of their capital.
With a concise idea of price forecasting, the risk in investing or trading a particular asset is worth taking.

Price forecasting also helps and investor to decide if he should go into a long term investment or a short term investment

Price forecasting is always needed in order to understand market trends.

It aids in risk management which will in turn help in incessant loss.

This last point might sound funny by its true. Price forecasting helps in curtailing heart break due to too much losses.

Best Methods For Price Forecasting.
As a novice trader that I am, I will always go for technical analysis because I helps me understand the nitty gritty of the particular asset I intend to trade. By nitty gritty, I mean the previous and present situation, that is the basics of the asset I want to trade. A good understanding of technical analysis will help me to trade on a more safer axis, even with my small capital, I will still trade and make little profits. After all, making little profits and accumulating them is far better than losing a big capital in just one trade and end up wallowing in depression (my thoughts thoughts).

W1 Prediction Chart Of ETHBTC

Consolidation might occur if the price reaches the resistance area.

If the current w1 candlestick breaks and closes above 0.04545, the prediction is that it will go long.

But to avoid fake out above the resistance area then a reversal back down, I'll have to maintain a reliable risk management and always place a stop loss.

As seen above, 48hrs after my prediction,there is a going long because it the candlestick has broken above the resistance.

This is the current chart as at this moment I am updating this post. The market keeps going bullish and therefore, before one week elapse, there will still be a bullish in the market.

Conclusion
Price forecasting is an ideal thing to do before venturing into any investment or trading. A trader must learn and understand which of the forecasting methods works best for him.

Thank you Prof. @stream4u for this weeks lecture.