Hello dear friend. I trust you are having a great day. I am here to make submission for the homework task by professor @stream4u which is Below

What Is Price Forecasting?

Price forecasting is the act of predicting or coming up with a value or price for a product, service, commodities etc after some evaluations must have been made and observed. There are some factors which affects the rate at which the price of a commodity goes up or comes down depending on the kind of commodity involved.

To look at the crypto world as it is one of the popular trend now, price forecasting can be evaluated by checking the factors such as demands, supply , hype, burning, locking of liquidity,technological progress, internal competition, pressure on the markets to deliver, economic problems, security issues, political factor etc of the certain crypto which gives the forecaster an edge to know whether a coin price will rise or will fall or remain in the same range it has been.

Why Price Forecasting is needed?

I. It gives invaluable foresight : Price forecasting is essential in businesses especially business that deals in trading. Price forecasting enables one to know when to buy into a business and when to sell.

ii. It also helps to save people from running into loss if they already have the commodity at hand earlier,
As much as price forecasting is good if the prediction isn't done properly it might lead to a huge loss for the investor. Also every prediction isn't 100% accurate so it is advisable to also put this into

consideration when going into a business so as not to put money one can not afford to loose. It is also time consuming to come up with a 80% prediction and also costly to have all materials to use in forecasting.

Methods for price Prediction/Forecasting in cryptocurrency.

1. Study/ Technical analysis : this is the first method in forecasting cryptocurrency, what one has to do is to study the data of the crypto he or she wants to invest or forecast.

The real time value and every details one could lay hand on such as the hypes on the coin, Closing Price(It is the market close price for currency for that particular day), High Price(It is highest price of currency for the day), Low Price( It is the lowest price for currency for that day), Open Price ( It is market open price for currency for that day.), Volume (The volume of currency that is being in trade for that day.), This information can be gotten from the coin chart in coinmarketcap.

This study is very important if the information gotten from the chart is misinterpreted the prediction might come out wrong.

1. Trial and error method: after the studying of the coin, one will then come up with some data or possible data like a rough estimate to test run the observations from the chart or the candlestick.

The person sets an open trade price and a take profit price or a buying price whichever one desire, if the trial value position opens, then another one is set again if this is met also one can then come up with a final data to work with then you Visualize the prediction results.after which one can proceed to predict the one which will be traded on.

1. There are also times when news can give one hints on if the price of a coin will fall or not, for example there was a rumour about safemoon been a scam project, obviously one would know that alot of people will dump the coin, which would give in to a fall in price this news alone caused a very great dip in safemoon which hasn't still recovered from it.

This is another method of predicting the price of a crypto. Using the candle sticks method, there are various representation of what a candlestick says on the chart. To understand better one has to go through the candlesticks Bible.

Take any Crypto Asset Chart graph and explain how to do Price Forecasting?

In this case I will be using the Binance coin/tether trading pair.

As you can see in the chart above, there is a possibility that the price of binance coin will still continue to bleed as the terms is been used.

But the bleeding or let me say the falling in the price of the BNB token will not go for a long time before making a correlation because there has been a successive red candle which according to predictions, we can be expecting the price to begin to rise any moment from now but there is still a need to bleed though before making that correlation

Thank you for stopping by to read my article.

If you actually like what you see😃😄😉,watch📷📺📸 and read📖📋 I would equally be grateful for an upvote♥️⚡ a very cool comment under my comment box or a reblog 🌀😏 for everyone to see ... and perhaps maybe you would like to follow me for more of my Post to show on your own feeds. Don't miss any of my Post.🔝. Special thanks to all who put big smiles on my face with Auto Upvote for always being supportive to me 💞💯.

Best regards

@stream4u

Written by @mandate

---

THANK YOU!