Task Subject: Why Technical knowledge is Important in Trading. Homework- @eberechi10 (100% power up)
My sincere appreciation and gratitude goes to the Steem team and Steemitblog for initiating an intriguing, wonderful and stunning programme like this. I also appreciate and thank crypto-professors for sparing there precious time to educate the entire Steemit Communities on different topics about Blockchain and Cryptocurrency. This is another clear signs that the Steemit management team have the betterment of every member at heart. Technical knowledge is a very important aspect of cryptocurrency trading, no crypto trader will be successful without have the technical knowledge of cryptocurrency.
The Importance of Technical Knowledge
In any field you fine yourself in this life, it is very important to have the knowledge and understand the concept of that field.
The higher your knowledge, the more your chances to succeed in it. Cryptocurrency is not left out on this principles. For you to be a successful crypto trader, it is a great necessity that you acquire technical kniwledge. There is no possible way to understand the crypto trading world without the help of in-depth knowledge. You can not also have an in-depth knowledge without technically analyzing various aspects of crypto trading.
Technically analyzing the Cryptocurrency world will go a long way in helping you know more about crypto price direction and price action. Now after knowing all this, you are in a good position to decide, how much you should be investing, the right time to invest and the token to invest on. It also helps you to avoid losses or reducing it to the bearest minimum.
What is the Role of Technical chart?
Technical chart is a very important tool in analyzing world and applying it to cryptocurrency industry. Technical chart provides a visual representation of datas, It's visual makes it easier for you to understand it. It also clarify information and can have different types of data at the same time represented. It helps trends to be easily recognized, and perceive information quickly. It also makes it easier for you to interpret data and help to remember data for a long period.
Uptrend or downtrend
In our everyday life, there's a trend, be it the fashion world, the football world or the food world ect. A trend can be said to be majorly based on public sentiment, novelty, demand for different products and services. Similarly, same principles is applicable to the crypto-trading industry. In the crypto trading industry, a trend can occur which can possibly affect the industry at large, affect individual coin, or can affect both the market and individual coin. A trend has the ability to moves upward or downward until something happens and alters its movements.
We have three movements that the cryptocurrency trading market can move, it can move upward, downward, or sideways. A sideways trend is an insignificant or little price movement or change and doesn't really affect the cryptocurrency trading market. Uptrend is when the price of coin is moving upward, it is when the chart’s peaks are reaching new highs as the trendup. While downtrend is when coin price is moving downward or lower, it's when the peaks in the chart continue to drop.
Speaking from my experiences, I prefer or like to buy when the price is going down (lower price) downtrend then hold it to sell when the price is going up at a (higher price) uptrend. So generally I think it's best to buy in downtrend and sell in Uptrennd for you to gain reasonable profit.
The Ethereum technical chart of today 11th February 2021.
Using Ethereum technical chart of today 11th February 2021 as illustration, you can view from the chart screenshot above that Ethereum started the day at $1,739.25.
Source
From the technical chart, you can view that Ethereum continued it's Uptrennd and hit $1,812.60 at 14:22:17
Viewing the Ethereum technical chart, you will understand that the price is moving downtrend, which is now $1,783.13 at exactly 17:50:01
Conclusion
From the Ethereum technical chart about, you see that Ethereum started the day at $1,739.25 moving up and them started moving up and down, than it peaked at $18,12.60 which represents $73.35 better than its starting price of the day. It started dipping down to $1,783.13, which is more than $43.88 lower than its starting price and $29.47 lower from where it started dipping. So analyzing based on the fluctuation of price movement today, one is safe to say that the best time to buy Ethereum today is at the starting price of $1,712.60 and sell it when it hit the peak at $1,812.13.
I specially thank you @stream4u for your time in this outstanding lecture.
This is my Introduction post here
Hi
You made a good post on a technical concept and explored it well.
So, according to this, how you will know when the downtrend will end, Can you predict the holding duration. Are you going to hold for 5-6 years, even after 5-6 years if the coin comes up then a question like, will it go down again and hold more 5-6 years or it will up, how much it will up, what profit got from holding 5-6 years? After such a period if the coin came up we simply square off with no loss and no profit.
Thank You For Showing Your Intrest to learn Crypto Trading Technical knowledge.
You have completed the homework task and made a good post, explained very nicely about why Technical knowledge is important in Trading and How to read and understand Trading charts?
Remark: Homework Task Completed.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
#india #affable
Good evening to you my Prof, let me use Ethereum as an example because I have gained a lot from it. I have never loss money on Ethereum, I buy at any time I feel it's low and for sure before one week it well be up and I will use it to buy stable coin like USDT or USDC and I wait when Ethereum or BTC will go down for sure before one week, and I buy it again. It have been my source of income since I joined the cryptocurrency trading.