Steemit Crypto Academy Season 3 || Dynamic Course for Beginners - Week 3 || About Trends, Supports and Resistances and other simple chart patterns || by @lordhojay

Question 1. Trend lines and their role
Explain how to draw an uptrend line and a downtrend line (Show a screenshot of each).

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1.Meaning of Trends

A trend is the apparent inclination at costs to move a specific way. In digital money, this can be separated to bullish patterns and bearish patterns.

A bullish trend is the point at which the cost of the resource is moving upwards. For this situation there is a critical purchasing activity, along these lines the value climbs in a huge manner throughout some undefined time frame.

The bearish pattern is the direct inverse, in that the cost of the resource moves downwards over the long run. It shows the selling activity of brokers or holders of the assest.

To perceive a trend, there should be a time period for which the pattern is said to happen. Patterns can seen during a time's market diagram, week or even a month. Few moments are too short to even consider perceiving a trend.

What are trend lines?

Trendlines are quickly noticeable lines drawn on outlines by trader to associate an arrangement of price. The subsequent line is then used to give the trader a strong feeling of what direction an investment worth may move later on.

A trendline is a line drawn over or under turn highs or lows to address the current value course. In each time span, trendlines offer a visual portrayal of help and opposition. They portray value bearing and speed, just as examples during snapshots of value withdrawal.

Roles of trend lines

1. It additionally help the trader or investor in knowing about how solid a specific trend is and when to anticipate a return in increment in the price the of assest or diminishing in price to know if it is the right time to buy.
2. It likewise illuminated the investor or trader about the dangers implied when settling on choices relying upon the value development.
3. To be an effective investor, you need to think about the trend, which is about the coordinating the development of cost in the market. It assumes an extraordinary part in the part of promoting methodology this has to do with the purchasing and the selling of resources openings.
4. It is through this direction(trend) that the trader will have the thought regarding when to purchase assets(bearish trend) and when to sell assets(bullish trend).

Question 2draw an uptrend and downtrend line
Uptrendline

1. Observe the price and follow how the price moves.
2. Recognize the highs and lows where cost bounced previously.
3. The lows should be associated by a straight line.

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Downtrendline

1. Observe the price and follow how the price moves.
2. Recognize the highs and lows where cost bounced previously.
3. The highs should be associated by a straight line

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Question 3. Explain support and resistance with a screenshot.
Resistance

Resistance is a level which stops the cost from moving upwards. The level where trader anticipate most extreme supply of an asset. It comprises of a level where the cost of an assest cannot get through because of solid selling pressure.

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Support
Support is the opposite of resistance. It shows a value level or region on the chart of an asset where purchasing interest is adequately solid to defeat selling pressure, giving either price solidness or upward movement. Any time the price of an asset drops to this point it bounces back.

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Question 4. 2 simple chart patterns with screenshots.
Wedges

Wedges structure as a resource's value movement fix between two inclining pattern lines. There are two sorts of wedge: rising and falling.
A rising wedge is addressed by a pattern line got between two upwardly skewed lines of support and resistance. For this situation the line of support is more extreme than the resistance line. This trend line signals that an assest cost will ultimately decay all the more for all time – which is shown when it gets through the support level.
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Double Top

Another example of pattern inversions used by traders is a double top pattern. Frequently, the cost of a resource will reach a peak before reverting to a level of assistance. It will then travel up once more before reverting back to the overall pattern.

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Cup and handle

The cup and handle pattern is a bullish continuation pattern that depicts a period of bearish market sentiment before the general trend resumes its bullish trajectory.
Following the rounding bottom, an asset's price will most likely enter a short retracement known as the handle since it is limited to two parallel lines on the price graph.
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Conclusion
While trend and trend line analysis are significant aspects of technical analysis, they are just one of many tools and techniques accessible. When a trend line is broken, it should only be taken as a sign that the trend is shifting. To confirm the trend change, you should employ other tools and indications.

Cc. @lenonmc21