Crypto Academy Week 10 - Homework Post for @stream4u

Hello everyone welcome to my final homework post of this week about price forecast given by @stream4u a professor in steemit.

Question Number 1:What is Price Forecasting?
This can be a apparatus entreated to foresee the value and result of an asset, product or item by considering and putting a few components into thought. This cost assurance by this tool would either exhibit an upward or descending development of value, thus too give a course to the financial specialist on when to purchase in or offer off for profits. This price forecast possibly custom-made on a number of different components which incorporate item characteristics, item request in trade, regular request and trends etc.

There are a lot of factors that come into place in price forecasting and they are Fundamental analysis (This is what the company can offer), Technical Analysis were the use of indicators in the chart of an asset, Sentimental Analysis this is based on assumptions or news we hear from the media about a particular project.

Question Number 2: Discuss on why Price Forecasting is needed?

A Trader who does not value the require for price forecasting is compared to a dazzle driver who is driving a group of other travelers to a known destination in their minds but headed south. This essentially implies that the require for price forecasting cannot be over-emphasized because it is the most way that coordinates the tradef on how to enter and exit a market, which are all in the idea of making profit.

It permits a trader and to create educated choice making from aggregated information and data gotten from past and current examination on when to apply them, which may be seen to abdicate more investments, more ROI, more budgetary planning, and proactive measures all geared towards more benefits and cash at hand.

Most traders have kept on using this tool to enable them be more proactive rather than being receptive. In a Little Cap market where a trader is required to know both his buy and sell point and risk level per day, on the off chance that not being guided may likely trade with emotions which may be more self-destructive for his assets. That's to say, it is critical to apply all the forecasting tools to decrease misfortunes and increase our gains or profits.

Question Number 3: Discuss What Methods are best you feel for Price Forecasting.
There are 3 best methods that i have listed above for price forecasting but in this question i am going to explain them.

Technical Analysis:
This tool essentially tend to utilize past and current market indicators of the asset to decide the price development of an asset in the event that it is beerish or bullish, market trends (Uptrend/downtrends), item support and resistance, buy and sell point etc which are for the most part referred to the asset characteristics. All of these considered, decides the cost behavior of that asset. Each trader chooses which one that best suits him but the general goal still remain the same which is to make profit.

Fundamental Analysis:
This strategy goes past the item characteristics over a period of time but burrow into the basics of this assets because it influences the performance of this asset. The trader tend to see at the long term plan of this asset by getting to its whitepaper which constantly states the roadmap of the given item. Other points of interest the trader may look at the practicality of the company floating this asset because it influences its budgetary status and capacity to drive all deliverables required to induce the asset bullish.

Sentimental Analysis:
Usually moreover another key tool but i will classify it as the slightest to be considered among this three strategies due to the theoretical assumptive nature. Most times choices taken here are from data from market pioneers, newsroom and media which now and then may not be supported. But it shouldn't be disposed as this may moreover be vital to form a few sensitive choice which may trend to be beneficial particularly when cost of same asset turns beerish.

Question Number 4: 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 you a method in the Technical analysis of price forecasting predict what could be the future price for Bitcoin in coming days.

The image above shows that bitcoin is forming a double bottom which signals a breakout to the upside and this can only play out when it pass that yellow resistance line so as an investor i will wait until i see a confirmation above the line before i open a trade, So if that double bottom works out for Bitcoin you can expect the price to pump to $54000.

Conclusion
Price forecast is like eyes for investors so it is very important because without it profits will not be made anyway thanks for reading @stream4u

Written by @okoyeclinton400