Steemit Crypto Academy | Season 3 - Week 5 | Homework Post for @imagen| - Intermediate Course - Market patterns and blockchain projects

For this task, I'll be making an investment in the ADA pair. First I head over to my binance spot wallet and search the ADA pair

As you can see from the screenshot above, I currently own no ADA holdings.
However, I possess some USDT, hence I'll make a trade in the spot market.

I bought a total of $15.643 USDT worth of ADA tokens at market price which is the equivalent of 12.29 ADA.

Why did you choose this cryptocurrency

Cardano is the first blockchain platform to be built through peer-reviewed research, to be secure enough to protect the data of billions, scalable enough to accommodate global systems, and robust enough to support foundational change.

Cardano is an effort to change and modify the way cryptocurrencies were designed and developed using blockchain technology. Cardano was created as an advancement over the ethereum network, aiming to tackle the problems confronting the ethereum network. With its speed and scalability, its capable of handling many defi projects simultaneously at relatively cheaper fees.

• Cardano utilizes the proof of stake model, Ouroboros consensus model which helps save gas fees, reduces congestion, and proves to be efficient in handling many transactions per second.

• Cardano was built facing the interests of stakeholders in mind with a view to bringing stakeholders closer to the operations and maintenance of their cryptocurrency.
  

  
  
  

What is it Market Capitalization?

For this information, ill be making use of stastical results from coinmarketcap.

The market capitalization of Cardano(ADA) at the time of this write up stands at $41,304,811,511

What is it position in the cryptoasset rankings?

Its position in the crypto asset rankings according to [coinmarketcap](coinmarketcap.com) is **5th position**

What is the objective of the project behind this coin?

The main objective of the project behind this coin as boldly stated in the whitepaper has been to create and build a sustainable future to assist cooperation among people, facilitate trust and discover a global solution to global problems.

Who founded this coin?

Cardano (ADA) was founded by Charles Hoskinson, who also happens to be a co-founder of ethereum. From his credentials and vast experience in the ethereum chain, it's understandable why Cardano is performing so well and is considered an advancement over the ethereum chain whose second-generation credentials are nowhere near Cardano's third-generation platform.

Ada" is Cardano's digital currency and is named after Ada Lovelace, a 19th-century countess and English mathematician who is recognized as the first computer programmer...
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However, there are three main organizations contributing to the growth and development of the cryptocurrency. The first is Cardano itself, a non-profit standard organization that oversees the advancement and development of the ecosystem. It's the legal custodian and owner of the Cardano brand.

The second is the IOHK foundation - It's an engineering research and research company founded by Charles Hoskinson and former ethereum colleague Jeremy Wood which builds cryptocurrencies and blockchains. It's responsible for building Cardano and all major advancements utilized on the Cardano chain. This organization works closely with academic partners to promote blockchain education and also improve the long-term scalability of the Cardano blockchain. its major innovation however still remains Cardano.

Lastly, Emurgo- Emurgo is a global technology partner and co-founder of the Cardano protocol. It supports and integrates commercial opportunities to aid businesses in the protocol. It also performs the role of ensuring commercial adoption of the Cardano protocol in the blockchain system.

Show the roadmap.

The Cardano roadmap consists of five major stages

BYRON / Foundation

This stage is basically how it all started. With Cardano back in 2015, adopting and utilizing the Ouroboros consensus protocol which was a groundbreaking development. It was the first proof of stake model created out of mathematically proven academic research. The first era was about building a community with the help of IOHK and getting people involved with the blockchain of the future.
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SHELLEY / Decentralization

This stage encompasses the major developments of the blockchain. It encompasses critical steps in optimizing decentralization, the introduction of delegation and reward incentives to sustain the ecosystem as well as advancements and critical developments to the blockchain to enable it to evolve as future proof
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GOGUEN / Smart contracts

After the decentralization of the past era, the Goguen era saw the emergence of decentralized applications (DAPPS). In summary, this stage represents the steps to make Cardano accessible to a wider audience regardless of blockchain experience.
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BASHO / Scaling

The fourth era focuses on the improvement of the scalability and interoperability of the blockchain through the introduction of side chains and parallel accounting styles. In this era, provisions for a network infrastructure to facilitate scalability and functionality without hindering the reliability of the network were made.
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VOLTAIRE / Governance

This era represents the stages of final developments intended to make the Cardano network become a self-sustaining system. It aims towards complete decentralization.
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What is the specific purpose of the cryptocurrency?

• Security: Every transaction on the Cardano network is digitally recorded in blocks that act like ledgers and once a block is filled a new block is created. All blocks are connected to each other using hashtags and a linear chronological sequence of these blocks forms a blockchain. Thus, every transaction is digitally recorded to keep security at a top-notch level.

• Transfer of value: Cardano was created to be used as a transfer of value and store of value. It was created to serve as an alternative form of payment system that would operate in isolation from external control but would mimic the attributes of the traditional currencies.

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

The evening star pattern is a common three candlestick pattern used to signal a reversal. It occurs at the top of an uptrend and signals the slowing down of upward momentum.

It consists of three candles

• a large bullish candle: This candle is a result of buying pressure and continuation of the existing trend
• a smaller bearish/bullish candle: The second candle is a small candle sometimes called a Doji. It presents the sign of a fatigued trend, it does not matter if it's a green or red candle as the main point is that the market is somewhat undecided.
• a larger bearish candle: This candle signals new selling pressure as the sellers have taken over.

In the chart above, we see the bulls were losing dominance. aThis can be observed by the long bullish candle followed by the smaller candle that went up a bit but couldn't push up and then the larger red candlestick signaling the beginning of a downtrend.
The hit rate for the evening star is a 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 used to signal a reversal of the existing trend. Just like the morning and evening star, there is the bullish abandoned baby and bearish abandoned baby.

The bullish abandoned baby

This candlestick pattern signals the end of a downtrend. It consists of a

• large red candlestick in a defined downtrend
• a Doji candlestick ( open is approximately equal to close)
• A large bullish candlestick that opens above the second bar.

The bearish abandoned baby

This candlestick pattern signals the end of an uptrend, it's a strong indication of bearish reversals
It consists of

• A strong bullish candle in a defined uptrend
• a Doji candlestick ( very close opening and closing price)
• A large bearish candlestick that opens below the second bar.

The hit rate whenever this reversal pattern shows up is 69%

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

Below is the 3-day chart of the BTC/USDT pair with candlestick patterns marked.

The candlestick pattern observed are:

• Three black crows: This candlestick pattern occurs over three candles, consisting of consecutive long bearish candles with small wicks which open and close significantly lower than the previous day.

• Bearish engulfment pattern: This occurs at the top of an uptrend indicating a reversal. It consists of two candles, a green candle and a long red candlestick with the second candlestick completely engulfing the body of the previous green candlestick.

In the 7 day (weekly) timeframe, I was also able to spot some common candlestick patterns

• Three white soldiers pattern: Three white soldiers: This candlestick pattern occurs over three candles, consisting of consecutive long bullish candles with small wicks which open and close significantly higher than the previous day.

• Morning star pattern: This is a three candle pattern that signals a reversal in the market. It consists of a long red candlestick followed by a smaller candlestick with opening price close to closing price(Doji's) which is then followed by a long bullish candlestick.
  

  
  
  
  Thank you
  Concerning the questions assigned by crypto professor @imagen and in accordance with the respective rules highlighted. I've done my research and tried to tackle the intermediary course. I was able to learn new things through the course of this task. I'd leave the assessment to the professors.
  Thanks to the steemit team for this wonderful learning opportunity once again. It's been nice so far, I'm forever grateful.
  Thanks for reading my write up and thanks for your support
  Thanks for curating my content :)