Homework task by professor @stream4u (Why Technical knowledge is Important in Crypto Trading?)

Hi as part of the class session written by @stream4u I will write my homework task thanks to @steemitblog for this interesting initiative for users to learn some interesting topics related to blockchain technology.

Technical knowledge and its understanding are very important when trading as a trader having a basic understanding of both technical and fundamental knowledge will help improve trading activities.

What is the role of the Technical chart?

The role of the technical chart in trading is very important as it helps secure trading activities, it also helps in the evaluation of investments for traders to identify opportunities to analyze technical chart trends in trading activities, it also helps in analyzing price movement and volume.
With the use of technical chart, with the use of patterns which are in form of the candlestick for determining and analyzing market movement and trading signal in other to determine market strength and weakness.
Market history and the past event of price can also be tracked with the help of a technical chart.

Most technical analysts are day traders who devise their strategic system of drawing and making their chart pattern for conducting their trades although most traders will have to rely on other means to determine how the price will move in the market.

Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities in price trends and patterns seen on charts.

In general, the role of the technical chart cannot be overruled in trading as traders depend on it to determine price movement and the history of price trends in the market.
source

Why do you think Technical knowledge is important.

It is important as it helps traders to determine the future forecast of price movement although traders will not completely rely on the use of technical analysis since it is not 100% accurate but will serve as a guide to help boost trading activities, it's important as it helps investors and traders to make a sound financial decision.
source

Uptrend or downtrend, which one is good for buy a coin, explain why?

An uptrend in the market is the upward movement of price, it indicates the high or peak price of a specific currency for instance when there is movement in price of USD in the upward direction then it is known as an uptrend.

On the other hand, a downtrend is the opposite of an uptrend which indicates a downward movement of currency.

Most traders take advantage of both movements to maximize profit when trading.

Although in general terms when there is an uptrend movement traders buy stock or any currency this principle could apply for day trading.

Which position is good for buying or selling would depend on a trader trading strategy.

In my own opinion as a day trader, I take advantage of the day and uses the uptrend to buy, in the situation if I happen to miss the uptrend I can sell from high to take advantage of the price fall.

In conclusion, buy and selling when there is an uptrend or downtrend depends on a trader.

source

Check any Crypto Coin technical chart and explain what you find/understood from the Chart with screenshots.

source
Here is a trading pair of BTC/USD, from the technical chart there has been a downtrend in price movement which was indicated by the red candle, there was also price retracement with a green candle that occurred in few minutes, and later the red market to charge again showing new candle.
It can be seen from the chart the year 2020/shows users on which years and month and hours there was much decrease in the price of Bitcoin.

In conclusion, technical analysis is very important in trading as it guides traders on when and how to open a market position.

#cryptoacademy #trading #begginers #task #crypto #technicalcrypto
@stream4u