^{Designed by @masumrbd}

First of all, I would like to thank professor @stream4u for creating this amazing post about price forecasting. Now we have all got a clear concept about price forecasting. I further study something more. Now I will answer your questions and complete my homework task. Let's get started:

Question: What Is Price Forecasting?

---

Price forecasting refers to determining the future value of an asset. If you invest without knowing the price forecasting, there is a possibility of loss. Price forecasting is very important for investing. People who trade in cryptocurrencies basically do a lot of research on it. If they do research right they can get very good out of it.

Question: Discuss on why Price Forecasting is needed?

---

The importance of price forecasting is essential for a trader If he wants to make money through trading. Price forecasting gives an idea of where the price of the coin goes. In the world of cryptocurrency, we can earn in both ways either uptrend or downtrend. That's, why it is very important to know price forecasting.

If he can do a price forecasting idea then he can take a "buy" or "long" position in futures trade for an uptrend. In this way, he will be able to gain as much as the price goes up. If the market seems to be moving towards a downtrend, then it is possible to make a profit with a "sell" or "short" position. So, you can understand price forecasting very important for trading.

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

---

Forecasting is determined by three methods: technical analysis, fundamental analysis, and sentimental analysis. I have tried to describe them below:

Technical analysis: In this method, forecast analysis is done based on technical issues. We have learned in the previous class how the price forecasting is done by analyzing Chart analysis, support, resistance, and moving average from these. I don't know why technical analysis works well in the case of forecasting.

Fundamental analysis: In this method, the trending, price chart is not moving anywhere. The only thing that matters here is how the company works. Looking at the management system of such a company, one can come up with an idea whether investing there will be profitable or it will be a loss. Although the issue of profit/loss is limited to many more. The company's monthly balance sheet, total supply can be seen. If you look at these things and think that the company can do better in the future, then you can invest there. These issues are important in the case of cryptocurrency. All things must be verified before investing in a coin.

Sentimental Analysis: The main basis of this method is to reduce or increase the high price in the market. Because if the market maintains the same trend, no one makes a profit or loss. So traders keep an eye on news and tweets. They take advantage of the fact that any news there suddenly starts a high or low price or increase in the market.

Among these methods, I think technical analysis and fundamental analysis are best for price forecasting. Because technical analysis just works fine for trading. Following the market trend is a good idea according to me. I think most of the traders use technical analysis for their day-to-day trading. Fundamental analysis is good for long-term investment.

Question:

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.

---

In this chart graph, I will try to explain to you how to price forecasting help in trading. This is a graph chart from trading view a 1-week chart of KNC/USD where I draw A-line as resistance around 3.7 and B-line as support at 2.6. From these two A and B lines, we can understand that the price is good for entry now. The current market price of KNC is in today's date(20 April 2021) is 2.6174 USD. That means KNC is in deep now. We may take entry in this price range. Hopefully, KNC will hit 3.7 within the next few weeks. B line is drawn from the past 3 weeks and becomes good support. The gap from support to resistance is 3.7-2.6=1.1 which is I think good for entering in a trade. If the gap between support and resistance is not good enough you may not earn such a good amount from a straight line.

In this chart graph, I draw C-line as a safe zone for our selling price. Because the crypto market is highly volatile that's why sometimes it goes up and sometimes in a downtrend. That's why always take the right time entry and the right time exit. Though our resistance is 3.7 USD, I will set my selling price at 3.5 USD as a safe zone in case if the market goes down after hitting 3.5 USD. If I set 3.5 USD as my selling price then after hitting 3.5 USD if the market goes down I will be profitable.

Conclusion:

---

Price forecasts help predict future prices, but not sure. Sometimes the market simply follows the downtrends so it is very risky for the crypto business. Always take care of your risk management. Understand and trade as much as you can. Here is the capital you will trade with that you will not regret losing.

Thanks for patiently reading this post.
@masumrbd