Hello everyone. I am going to do the homework for professor @lenonmc21.

1.Define in your own words what is "Trend" and trend lines and what is their role in charts?

The price of coin keep changing. The trend mean the direction of price. The price can rise and fall and so the trend also change. The trend is the direction in which the price is moving. There are two trend in crypto market.

1- Bullish Trend

When the price start rising upward, the market is said to be in Bullish trend. In bullish trend, the price of coin rise continuously. This happen when the many investors invest in the coin. The demand of coin increase and so that the price too. The more the investment and demand of coin, the more the market will rise. The people usually invest in the coin with this hope that the coin price will rise in future and they will earn reward.

2- Bearish Trend

The bearish trend is opposite to the Bullish. In bearish trend, the price of coin move downward. The demand and the price of coin decrease. In bearish trend, the price of asset decrease continuously.

Key points

Trend define the direction of market

The trend change with the movement of coin price.

When price rise upward, the market is in uptrend

When price fall downward, the market is in downtrend.

The trend help the investors to take the trading decisions. The trend shows where the market is going. If market rising upward, the traders then invest their money and wait for rise in price. When the price reach to the high, the investors then sell their hold coins.

And when the market is up, the investors find it good chance to earn money by selling the coins. The trend in chart help to identify the movements of market

The trend line on the chart show the direction of trend. The trend line define either it is downtrend or uptrend. This line show that whether the price is moving upward or the market is in downtrend. Moreover, the trend line show how strong the trend is and how fasly rise or fall in price is occurring.

Key points

Trendlines are used in graph to determine what trend is going on in the market.

Trend line show how strong the trend is.

Trend line help the traders to determine whether they should invest or sell the coins.

The trend line Show how strong the trend is. It shows where the market is moving. The speed of change in price is also shown by the trend line.

Question 2: Explain how to draw an uptrend line and a downtrend line (Show a screenshot of each).

The crypto market keep moving upward or downward. When the price is rising upward, the market is said to be in uptrend. The uptrend is started when the market move upward. To draw an uptrend, we need two or more high-low points or bullish spots in chart.

When market is going downward, the downtrend or bearish trend start. To draw a downtrend, we need some points in downward direction. Some low-high and lower-low points or bearish points placed while drawing the downtrend.

Define in your own words what "Supports and Resistances are and how we can identify both zones (Show a screenshot of each one).

The support level is the average minimum price level of an asset. The support level is the best time for the traders to buy the coin. The price of coin is low and investors buy the coin in support zone. When the investors invest, the demand increase and price of coin also increase. The support level refer to the reverse of price from downtrend to uptrend.

To draw a support line,. we need at least two lowest-low supports. This line indicate the average fall in price of coin

The point when the price take a reverse from uptrend to downtrend, the resistance level spot there. This is the average maximum price of coin. When market is at uptrend, the investors sell their coins to get the more income. The demand and the coin value is decrease . And market start moving downward.

To draw a resistance line, there should be atleast two highest-high point.

What are simple chart patterns and how can we identify them?

Head and shoulder chart

This is the chart where there are three tops on the peak. There are three highest-high point. The first and third are a little bit smaller than the middle one. After the third one, the market reverse back to the normal trend. The price start decreasing. The highest-high turn into lower-high.

Double bottom

The double bottom chart is seen in the market downtrend. When the price reach to the lowest point for two time. The two lowest-low points are observed here. The price reach to the lowest-low, then rise up again and again gall and a lowest-low spot observed here.

Conclusion

The trend refer to the change in market price. The trend lines are use in chart to define where the market is going and how strong the trend is. The uptrend and downtrend are continue to occur in market. When price rise upward, the bullish season start and when price fall down, the bearish season start. Then we discussed the resistance and support lines. The resistance and support level help the investors to determine about the entry and exit spots. At the end, i studied and explain the two different charts.

Regard