Crypto Academy Week 10 - Homework Post for [Professor @stream4u]

Good day beautiful Steemians, I am @hadassah26 and this is my week 9 homework for professor @stream4u on All About Price Forecasting.

"1. What Is Price Forecasting?"

We can not talk about price forecasting without mentioning the word Value. From the days of trade by barter, through the ancient silk road down the industrial age, stock market and now the crypto age. Man has always tried to determine the value and tradability of items.

Price forecasting for me is the act of gaining good information about a tradable item and having good technical know how to be able to tell how valuable that item is and how much it should be worth should be in the nearest future.

"2 Discuss on why Price Forecasting is needed?"

Continuing on Value, I will say price forecasting and valuation is needed to determine future gain or prevent future loss, let me explain.
When defining price prediction and the future value of coins, currencies or asserts we take some important concepts into account, these are:

• Functionality: Before buying a coin or currency or even an assert, the first thing one should consider is functionality. How functional and useful is that coin? Why would others want to go into that coin? What are the advantages of that coin over other altcoins and if that coin has some down sides what measures have the team put to mitigate it.
• Demand: In economics demand is the ability and willingness of people to buy something. Demand which I divide into:
  • Time based demand: This is demand influenced by time and season, in trading for example the time between the New York and London sessions. At this time the volume of the market is so high price volatility becomes imminent.
  • Trend Demand: This which relates more to technical analysis and traders psychology, trend demand is caused when traders lose or gain interest in a particular coin majorly for no justifiable reasons. This causes price to move in a certain pattern.
• Supply: Supply is the production which amounts in circulation of a coin. Too much supply can bring about over circulation and inflation, so crypto companies try to cut the amount of their coin in circulation through coin burn.

On understanding the current value and being able to predict the future worth of that coin, currency or assert, we can now be able to tell if it is declining or becoming promising which tells us to either Enter or Exit for future profiting or reduce future loss.

"3 What Methods are best you feel for Price Prediction/Forecasting."

A good fundamental and technical analysis is great for price prediction, Let me explain:

Fundamental Analysis:

Fundamental analysis as the name suggest gives information of the roots, accountability/audit, project purpose and team of a crypto company.
I will say I am a huge fan of fundamental analysis as I always try to see how valuable a crypto currency is before buying it.

Let us do a simple example with the Binance coin.
The Binance coin which is the base coin of the Father, Binance crypto exchage platform.
With crypto positive sentiment growing rapidly among individuals and Binance being the biggest crypto exchange platform and so many discount advantages on owning the Binance coin on the Binance exchange platform, it already gives a good fundamental backing of the Binance coin.

Further, the Binance coin coin ranks third by market capital with a $75,381,000,528 current market capital and a great team authored by Changpeng Zhao. The Binance coin shows to be a promising coin.

Technical Analysis:

Although great fundamental analysis is good, Technical analysis will help show when to enter or early exit a coin.

Technical analysis on the Binance coin.

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On the monthly chart, with the super trend indicator giving a buy trend and moving averages 10, 20 all giving a buy trend continuation and the candle stick formation showing a 3 white soldiers, we see price has more probability of going higher.

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Viewing the weekly chart for confirmation, we can see price made a recent upward fractal formation indicating it may deep down this week and maybe next, this now tells us to wait and watch for some retracement before entering.

With these two basic fundamental and technical analysis on the Binance coin we have been able to see that fundamental analysis tells us how great a coin is, while technical analysis gives us prefect timing for entry or exit.

"4 Take any Crypto Assets Chart graph & as per its current price tell us what will be its future price for next 1 week or 1 month?"

For this question I will be taking the steemit steem coin and doing some technical analysis on it.

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Looking at the steem BTC daily chart at currently 0.00001705, we can see a head and shoulder price action.
This shows a weakness in the buy trend and an expected sell trend towards 0.00001500

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On the weekly chart, we see a recent downward facing loop formation and a building up 3 black crows retracement candle stick formation. This gives more information showing we are entering a new short sell trend towards the next support. With maximum support being 0.00001000 and minimum support at 0.00001400, here we may expect some consolidation and a hopeful bounce back to a new high.
From my technical analysis I think the steem coin would hit 0.00001400 in the next 1 week.

Conclusion
Price forecasting is integral to business as it tells us when to go in, hold or go out of a certain coin, currency, assert or even business.
Thanks.