STEEMIT CRYPTO ACADEMY WEEK 14 HOMEWORK POST FOR @STREAM4U |TECHNICAL REVERSE STRATEGY| CRYPTO PRICES AND MARKET SOURCE; REVIEW OF COIN GECKO

INTRODUCTION

Hi guys, it's nice to be part of another week on steemit crypto academy and attend another lecture by one of the great professors.Today I'll be making an homework post on the lecture given by professor @stream4u on REVERSE STRATEGY and REVIEW OF COIN GECKO.

REVERSE STRATEGY

Reverse strategy simply means doing the opposite of the normal process,or reversing a trend.Reverse strategy in this case is a strategy used when using technical analysis to trade in the cryptocurrency market.This strategy enables a trader to maximize his profits from a current bullish or bearish market,giving the trader insight on when to buy into the trade.

• HOW IT WORKS

In a scenario when a trader notices a market ongoing a long bullish or bearish pull,it is best for a trader to be patient and study the market first before making decisions just to be certain if the market won't undergo a complete reversal.

We can take a case where a trader notices a market undergoing a bearish run for a long period of time,the trader would instinctively want to buy in as he expects the market to go bullish back soon.This night not go as expected as the market might keep going bearish thereby giving the trader losses on his investment.This is where the REVERSE STRATEGY comes into play.

Using technical analysis to read the chart,the REVERSE STRATEGY is used.This strategy is used to properly plan an investment.When a long bearish run or bullish run in a market is noticed,it is best to study the market for at least 24 hrs before trading.That is,the trader should not rush into the market and should wait at least a day to study the price behavior.In this time frame the price of the asset can rise above +20% or dip below -20% .

When this happens,the trader should note the closing and opening price of the day ,also the high and low points at the end of the day.Reverse strategy depends largely on the closing price and the opening price of the next day.If we consider an elongated bearish market,if the opening price of the new day is very close to closing price of the former day,then it is a great time to buy into the trade.After buying into the trade,it is best to set the lowest point as the stop loss and then set the highest point as the take profit.If if crises the previous high point ,you can also decide to hold,but as it has crossed the high point ,you can exit the trade at any time you want.

• BNB/BUSD CHART SHOWING REVERSE STRATEGY

Using a screenshot of the bnb/busd pair chart on my binance exchange mobile app, I have marked out the bearish and bullish reversals using arrows.

The red arrows signifies the bearish reversal and the blue arrows signifies the bullish reversals.

Example of a bullish reversal with arrows signifying stop loss set at low point and take profit set at high point

REVIEW OF COIN GECKO

On this part of my post il be writing about coin gecko,how coingecko can be helpful to traders and then it's features.

• WHAT IS COIN GECKO?

Coin gecko is a platform created by TM Lee and Bobby Ong with the aim of tracking digital currencies and giving information about them.Coin gecko currently the world's largest digital currency data collector with information of over 7000+ cryptocurrencies being tracked across just over 470 exchanges.

• How coin gecko can helpful for you in a crypto market.

Coin gecko gives information on digital currencies so the information supplied on a certain crypto currency can help a lot. On coingecko you can get the price of a digital currency,you can also get the rank and current volume of the digital currency.The historical chart of the digital currency is also available and these information are important things to note before purchasing an asset.

• Some features of coingecko

On getting to coingecko.com ,the homepage gives information on digital currencies and their current rank and price.At the top of the page,you'll also see the number of coins (7367),exchanges (473) and the current market cap.So in this part of my post,I'll be exploring different parts of coin gecko.

Table showing rank of cryptocurrencies

Exchanges

Coingecko gives on the top Exchanges in the crypto world by their trust score rating with binance currently leading the way ast the top spot exchange followed closely by coinbase.

top spot exchanges

Coingecko also shows the three types of exchange,the spot,the decentralized exchange and the derivated exchange.

top decentralized exchanges

top derivatives

Categories

Table showing the top categories in the cryptocurrency world
As you can see from the screenshot above,coingecko gives information on cryptocurrency categories with exchange based tokens currently having the highest market cap.

Newly added coins

This part of coingecko shows the new added coins and it also shows their value and the time they were added.

Decentralized finance coins

Coingecko also gives and ranks the top 100 defi coins based on market cap.

creating an account with coingecko

You can also create an account with coingecko can be done using your email address.

there are many more features on coingecko and can easily be assessed by going into the site coingecko.com

WEEKLY PRICE FORECAST FOR BNB

For this task I'll be using the BNB/USDT pair.

• WHAT TO KNOW ABOUT BNB

BNB is No. 3 on coinmarketcap and it is a well known coin.It has also been undergoing uptrend before the recent dip in value. BNB is the binance exchange token which was launched in 2017 to mainly combat high transaction fees.It has a market cap of $78,907,875,620.

screenshot from my binance exchange mobile app

• Why I chose BNB

First of all I love bnb and it is the native token of the binance smart chain.Binance being the top rated exchange thereby giving BNB a lot to credibility in the market.

• Technical analysis of BNB/USDT pair

I have decided to use technical analysis to predict the future price of the BNB/USDT pair.
I'll be using the 1 hr trading graph.

Bnd/usdt is in support in the one hour chat as you can see. It has been tracing the reversal strategy now that it is in support we should expect a breakout out price of BNB will increase in the next one week probably regaining it's original price. BNB is in the buy point and it is the best one to accumulate BNB.

That hammer candle is also indicating a strong buy position the price of BNB will surely increase in the next one week since the hammer is in the bearing position (downtrend). Lets expect an increase in the price of BNB.

The possible high level should be around $575 mark and the possible low should be around $484.

CONCLUSION;

Thank you for reading my homework post given to me by professor @stream4u . That's what I understand on reverse strategy and I also dropped a short review on coingecko.

Thanks you professor @stream4u for your lecture and teaching us a new strategy for trading.

CC : @stream4u

#stream4u-s2week6 #cryptoacademy #steemitblog #nigeria #reversestrategy