Crypto Academy Season 2: Week 2 || Homework post for @stream4u || by @janemorane

Hello everyone!

Today i am going to write my homework task for professor @stream4u as the lecture was so important for the future investors the home work is going to be very interesting, So let's get into it..

What Is Price Forecasting?

Price forecasting is actually price detection of an asset in which you are going to invest. It is the prediction of price of the coin in the market with the help of different types of methods such as technical, Sentimental and fundamental methods and to check its up and downs and than to predict if the coin will go up or down according to your analysis on the coin. Price forecasting is important to know the market trend of the Asset.

Discuss on why Price Forecasting is needed?

Price forecasting is very much important specially than when you are planing to invest in a currency than you need to check and analyze it market and it graph. Without a proper price forecasting you can lead to a big loss, because you didn't know the future price of the asset and invest your money without analysis and hence leads you to a big loss by wrong decision. That is why you always need to be careful and fully aware of the market price and than decide weather to enter the market for investments or to leave it at the same time.

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

There are various methods through which price of an asset or coin can easily be detected.

1.Fundamental Analysis.

Fundamental analysis is all about to analyse the fundamentals with can effect the future price of an asset. These fundamentals can be any big events coming in the future which can cause the change in price, sometimes very high and sometimes very low depending on the type of event it is gonna be and how it will effect the price.
These events can be anything from The release of a blockbuster movie, change in GDP to any of the day to day news which keeps on coming out and bring change in the rate of an asset.

2. Sentimental Analysis.

Wel,l sentimental analysis is all about the sentiments of the people who are investing in a currency, but remember sentiments are always short termed. If more of the people or investors are going up others just follow their sentiments and assume a position which is good.

3. Technical Analysis.

Technical analysis is basically to know about the future of some currency, in technical analysis people compare the past with the present and check if there were any similar conditions in the past that cause change in prices of the currency and according to that they predict the future of the currency, this is known as the technical analysis for a currency which is used in price forecasting.

The Best Of All

For me the best of all the methods for price forecasting is the technical one because sentiments can be wrong and there can be any reason for most of the people going down and technical analysis helps to get very accurate forecasting most of the time and hence it is the best method of all.

Take any Crypto Asset Chart graph and explain how to do Price Forecasting? OR 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? You can predict for any direction up or down but explain it properly on what basis you have predicted the price.

Candlesticks

well candlesticks provide you all the related data you want according to the ups and down of the price or about the opening or closing price of the market.
the red candle sticks shows when the price gone down and the green candlesticks shows when the price gone up. the end of the green candle shows the opening price and similarly the end of the red candle shows the closing price.

Moving Average

Moving average is the tracking of all the average prices of the currency during the whole timer period and take out all prices average. This is easy as you have to make observations for the average rates and make a collection out of them and through it you can indicates that the rate will go down or weather go up in the future and it helps you to predict the price through indicating the moving average of all the trading time.

CONCLUSION

If someone wants to invest in a particular currency a person should first do all kinds of analysis from technical analysis to Sentimental analysis and check the market trend carefully only then invest in a currency otherwise you can go to some very big depth and loss.Thank you so much Professor @stream4u for such an informative lectures..

Regards
@janemorane