Crypto Academy Week 10 - Homework Post for @stream4u

Hello everyone welcome to another home work given by our professor @stream4u were he discussed about price forecasting and he gave homework about his lectures.

Home work Question

What Is Price Forecasting?
1).Discuss on why Price Forecasting is needed?
2).What Methods are best you feel for Price Prediction/Forecasting.
3).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.

The Questions are listed above and they need answers that is i am going to start from number 1 so let's begin.

1).Discuss on why Price Forecasting is needed?

Price forecasting is needed by every investor who know what he or she is doing because price forecasting is the to know the price actions of a particular asset in coming minutes, hours, days and so on.

Price Forecast is a tool used to know the future price of an asset either by trend (uptrend/downtrend) so that you can make a wise buying or selling decision.

In price forecasting you take a lot of things into consideration like the fundamental analysis which i am going to discuss later with the technical analysis and sentimental analysis all this i will discuss later but after question 2.

2).Discuss on why Price Forecasting is needed?

Price forecast is very important because it can't be over emphasized because investors need it to maximize their chance of making profit not only when it's bullish but also bearish.

To discuss the importance in price forecasting in short is it helps an investor or trader take opportunity by properly analysing the price action of an asset.

3).What Methods are best you feel for Price Prediction/Forecasting.

I listed the methods above which are Technical analysis, Fundamental analysis and sentimental analysis.

Techinal analysis

This is the analysis carried out technically by analysing an asset chat which includes understanding the price action of an asset whether it's an uptrend movement or downtrend movement and also indicating the support or resistance of an asset to know when to buy or sell.

Fundamental analysis

This is the analysis carried out on what the asset can contribute to the crypto community, the analysis is also carried out on the team of that project, if the team and what the project is doing is good then investors and traders will invest in that project.

Sentimental analysis

This is an analysis that is based on assumptions of an asset from people in the crypto world that will be saying the asset will do well in price because obviously if you are holding an asset you will want the price of the asset to rise.

3). 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.

I will be showing the method you can use to forecast the price of an asset through the technical analysis method, i will be showing you guys how to identify support and resistance.

Step 1
To identify support you have to locate the point of break out or the point were the price can't go below as you can see in the BTC/BUSD chart below.

As you can see above with this recent Bitcoin dump it has created a support at $47500

Step 2
To find the resistance of the price of an asset you have to find highest point the candle stick in the chart reach before getting rejected like in the BTC/BUSD chart below.

As you can see in the Bitcoin chart it reached $51,349 and then had a correction that is were a resistance is indicated.

If you are an investor you would want to buy in the support an sell or take profit in the resistance that is why they advice you buy every dip because you as a investor will not want to buy when the price has hit resistance.

Conclusion
Price forecasting is the only way you can safely invest in any project as an investor any i am @okoye

Cc: @stream4u

Written by; @okoyeamaka11