Homework Task by @steem4u|| Why Technical knowledge is Important in Crypto Trading?|| @okoyejoshua

INTRODUCTION

Greetings to every one who is going to read this as i solve this home work assigned to me by @steem4u and i want to also thank @steemitblog for this community called crypto academy.

In this home work i would be explaining the following.

1. What is the role of a Technical chart?
2. Why do you think Technical knowledge is important.
3. Uptrend or downtrend, which one is good to buy a coin, explain why?
4. Check any Crypto Coin technical chart and explain what you find/understood from the Chart with screenshots.

So to explain it properly i am going to be taking them one after the other.

What is the role of a Technical chart?

The role of technical chart is very important fkr any trader whether it is crypto or forex you need the technical chart because it will guy you when ever you want to enter a trade or when you want to leave a trade, you need technical chart to maximize your profit and minimize your loses.

In this particular chart i prefer the chart to read in candle form then i will differentiate it with colors, when i mean in candle form because in every market there are buyers and sellers so to know when to enter the market you need to differentiate them with colors so that you will know which trend the market it's following.

Picture of Atom/Busd trade

From the candles in this chart, the red represent the sale while the green is the buy candle.

WHY I THINK KNOWLEDGE IS IMPORTANT

I think it is very important because without it if you are entering a trade you will be entering it blind and that is a bad strategy because if you are unlucky you will be rekt. This knowledge helps to either buy or sale. Or to wait for a particular movement to complete before entering the trade.

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

To be very sincere with you it is the uptrend but you need to identify where the trend started because if you don't you buy on a resistance point and then the chart will start a downtrend or may continue the uptrend the risk is more less when buying an uptrend than downtrend because when buying a downtrend your hope will be let it hit a resistance and support so that you can take advantage so the risk is more higher.

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

This is a chart that shows Uptrend

From the chart above the market is on a uptrend and in this type of market you have to taka advantage of an early entry into the market because if you enter late it is possible that it will hit a resistance point.

This is a chart that shows a downtrend

From the Chart above, the market is on a downtrend and at this point, if one chooses to buy, he can only take advantage of resistance and support.

CONCLUSION

I think i have explain to a very great degree, i have been able to give an explanation to the following.

1. What is the role of a Technical chart?
2. Why do you think Technical knowledge is important.
3. Uptrend or downtrend, which one is good to buy a coin, explain why?
4. Check any Crypto Coin technical chart and explain what you find/understood from the Chart with screenshots.

Now it is time for the approval from @steem4u.

I also want to thank you that have read it this far and i hope i explained it your understanding I am really thankful to @steem4u for his first lesson for the first week. See you soon in my next home work.

CO: @steemcurator01
Cc : @steemcurator02
Cc : @steemitblog
Cc : @steem4u