Crypto Academy Season 2: Week 2 ;Homework post for @stream4u

INTRODUCTION;

Hi guys ,welcome to my homework post for steemit crypto academy season 2 week 2.This assignment is based on a very informative lecture given by professor @stream4u on price forecasting.

WHAT IS PRICE FORECASTING?

Price forecasting is a way or an act of predicting the future price of an asset,a market or a commodity.

Price forecasting gives a trader a foresight of what the market will be in the future and it is one of the best way of analysing a market trend.Price forecast also helps in short term investments and long term investments.

REASONS WHY PRICE FORECASTING IS NEEDED

Price forecasting is very important in trading as it gives a trader foresight about what will happen to the market in the future.

Price forecasting also gives important information about economic activities that will come up in the nearest future.

Price forecasting is also important in the sense that it helps reduce the uncertainty of a market and it also helps increase the knowledge of the activity of the market.

BEST METHODS FOR PRICE FORECASTING

First of all ,we have three types of forecasting analysis;

1. TECHNICAL ANALYSIS

Technical analysis is a way of forecasting price using technical indicators like RSI ,moving averages,Bollinger bands etc.Technical analysis can also be done with candlesticks , support and resistance.

Different time frames gives more interpretation on the future market especially the 4hrs,1day and the weekly chart time frames gives a lot more information on the future price.

Technical analysis is so important that it gives you a foresight on when to get into a trade and out of a trade.

2 FUNDAMENTAL ANALYSIS

This is a trading analysis that deals with the news.In thus method,a trader uses the current news of an asset,a company or a country (major countries) to forecast price action of the market.

For example,the non farm payroll.A recent news was also dropped in the United States that brought the value of cryptocurrencies down temporarily.

3. SENTIMENTAL ANALYSIS

Sentimental analysis deals mainly with how a trader feels about a market .Most traders often have a positive feeling towards a market once the news on the market is positive and then vice versa.

This is a bit similar to fundamental analysis in the sense that traders analyse the market due to news which can often cause high volatility in the market.

WHAT ANALYSIS I THINK IS BEST

All forms of analysis are generally good and as a trader ,it is best to pick the analysis that works for you.

Personally, I feel the best method is technical analysis.Here are my reasons;

1. Technical analysis gives more information about future prices of market.
2. It gives traders more edges to win in the market as knowledge about the market is in play.
3. It also reduces risk of losses in a market.

WEEKLY BTC/BUSD CHART AND MY PREDICTION

According to what am seeing this weekly chart ,the BTCBUSD market has been quite from 2020 the beginning till the end of 2020 , of which as a trader when we see or discover and squeeze like this we should always expect a breakout ,the more the squeeze the more the breakout it might be bullish or bearish .

Now coming to the 2021 part of the chart we had a breakout upward and till the last two candlestick which show a strong reversal signal .
So for the next one week for BTCBUSD market ,will go down before retracing it self up.

This is a daily chart of BTCUSD here the market follows an uptrend of RESISTANCE AND SUPPORT level which indicate a strong buy ...on till the last blue arrow where we have a reversal downward which indicate that the market is going the other way round , sellers are in control of the market ...and some reversal candles like inverted hammer ,doji e.t.c....has shown us that in the next one week the BTCUSD market will fall steadily.

This is my assignment post on price forecasting given by professor @stream4u .

Thank you for reading.

CC: @stream4u
CC: @steemalive

#cryptoforecast #stream4u-s2week2 #cryptoacademy #steemexclusive #nigeria