Crypto Academy Week 10-Homework post for @stream4u... My submission about price forecasting.

Hello Guys!

Hope all are well. First of all, I would like to thank professor stream4u sir for the wonderful lesson. I will briefly share with you in my own word what I have learned from that lesson and what I have learned from my few days of research.

Answer of First question.

Source

Price Forecasting

Price forecasting is one kind of way by which one can guess about future market price. It can be more or less. Price forecasting is very important for traders and sellers. Because if anyone wants to invest in a volatile market, he must predict the current and future value of the product. If a trader wants to know when he will enter the market and when he will sell his product, he has to do a price forecasting, but it is never possible to make a good profit without price forecasting.

Then I can say in my own word that the main strategy of profitable trade is price forecasting.

Answer of second question.

I have mentioned above what is price forecasting. There is no doubt that price forecasting is very important for traders and sellers. Because I think traders and sellers will never make enough profit if they can't do good price forecasting. An example is very easy to understand, suppose a trader wants to invest some money by buying a coin in binance. If he thinks that he will benefit from his investment. An expert trader must consider the current value of a coin, its past value and its future value. Because the price of such coins is never stable but there are some coins whose value is somewhat stable but they cannot be profited by investing in these coins. So the solution is to invest in unstable coins. If a trader buys or sells currency without price forecasting, it can be said for sure that he can make a big loss. So I think price forecasting is the main issue for traders and sellers. If I say for sellers, then the same thing will happen because price forecasting is very important for sellers because if the seller does not sell his products at the right time, he may fall into loss. From the above example it is clear that price forecasting is very important for traders and sellers.

Answer of third question.

Some method of price forecasting given bellow.

Technical Analysis

Technical analysis refers to enable traders to evaluate security depends on indicators for example volume and past price. Basically the goal of technical analysis is to future activity and future price fluctuation. Different tools including charts and indicators like volume, distribution line, average directional index, indicator used by technical analysis. Market action is the most important factor as well as price movement also important for technical analysis. We can apply different instruments, including futures, commodities, stocks, indicates and others in technical analysis. It is applied to daily, monthly, weekly. In the technical analysis the price of asset monitored time to time as to the previous market price to current market price.

Fundamental Analysis

A skilled investor considers different aspects and if invest is profitable then he invests. A company's production rate, management system, company's performance, their market supply, monthly balance sheet, as well as the company's profit and loss and the company's loan papers are reviewed. Fundamental analysis is usually done in a company. This is the difference between technical analysis and fundamental analysis. For example fundamental analysis is done in his field but technical analysis is not done in that way. Fundamental analysis reduces the risk of loss. The chances of making a profit here are high and investing here is comparatively safe.

Sentimental analysis

In this method, trader can earn well profit as well as sentimental analysis comparatively easy technique than technical analysis and fundamental analysis. In this system the price of the product can reach the highest or lowest level. Actually it depends on different forums such as news, announcement, besides various social media such as facebook, twitter, Instagram etc. A trader always try to keep an eye in twist for gating the advantage of his trade. In this scenario, the result may be negative or positive. If it is positive then the profit is negative then the investor is more likely to lose.

My Opinion

From the above discussion I think technical analysis and fundamental analysis are quite good. Because if I want to invest by technical analysis, then of course I can be profitable, but it is good for a short-term investment. Again, if I want to make a long time investment, then I have to do fundamental analysis. However, for safe and secure investment, I will prefer fundamental analysis first.

Answer of fourth question.

Now I am going to share my practical knowledge from the lesson. I have taken a screen shot of a graph in a few weeks as a sample. I will explain here where the entry can be taken and where it would be better to sell.

You need to have a good idea about the two words involved in this interpretation. The two words are Support and resistance.

Support:

A good analysis of a graph will show that a level has been created by reducing the price of the product, this level is support. Traders usually take entry here

Resistance:

After the price of the product goes to a level, it does not increase and we call that resistance. Here traders exit. If you have to cross that level, then resistance can be taken as support. And entry can be taken there too.

From this graph chart I will do price forecasting through technical analysis. I have selected FIL / BUSD for price forecasting. I have given two straight lines in the graph, here Y is support and X is resistance. In the graph chart we can see that in a few weeks the current market price of the coin has arrived up to 133 and the highest price has arrived up to 165 and the lowest price has arrived up to 129.8735 The coin has not come under support in the last few weeks. And the current price has started to rise above the lowest price. From here I can predict that the price of the coin will rise in the next few weeks. So I can take entry in the market now. I think this is the best time to invest. Again, when the market price touches resistance, I will be able to make the desired profit by selling the coin.

Again, if the market price continues to cross resistance, then resistance can be invested as support, but not for a long time. This type of market always volatile any time market price can decrease.

I have given the Z straight line in the second graph chart. I have taken Z as safe zone. If any how the market suddenly starts to go down without touching resistance, then I have to sell the coin in the Z zone, otherwise I may have to wait for a few weeks to get the desired profit.

Conclusion

Price forecasting is important for every investment. Without it, good results can never be expected in trading. I appreciate Professor @ stream4u sir for his informative lesson.