Crypto Academy / Season 3 / Week 3 - Homework Post for professor @imagen

Hello All,

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INTRODUCTION
Let me begin by saying a very big thank you to our respected professor @imagen, for bringing this educative lecture to us, because this will go a long way to help crypto traders understand more about price patterns.

Technical Analysis: Can be referred to as a trading strategy that identifies opportunities by analyzing historical prices and volume trends.

Price Pattern: This helps traders to know the direction and state of the market. In most cases, the price pattern is either in continuation or reversal.

Technical Analysis of Price Pattern: I can regard this as the historical study of price trends, direction and condition of the crypto market.

Having studied and understood your lecture, permit me to proceed with my homework task which is on "The Introduction of Technical Analysis of Price Pattern."

Question 1

Perform the staking on a platform of your choice.

Which platform did you choose and why? Which wallet did you use for the procedure? Use screenshots of your own. How can you link your wallet to the platform you chose? Which coins will you staking with, what is the APY/APR (show screenshots).

Answer

For the sake of this lecture, I will be staking, using the Pancakeswap. Because, Pancakeswap is a decentralized exchange on the Binance Smart Chain (BSC), that offers a big amount of DeFi farming opportunities, and it equally rewards those who stake it's native BEP-20 token called CAKE.

It is currently competing with both Ethereum and uniswap as one of the largest exchange in the world. No doubt pancakeswap is one of today's largest DeFi protocols that enables users to swap between cryptocurrency tokens by venturing into user generated liquidity pools.

I will be using trust wallet for the procedure

See how to link Trust Wallet with Pancakeswap exchange

• The first step I took was to click on the DApps segment of my trust wallet.
  

• Then I clicked on Pancakeswap, and I then clicked on connect.
  

• A list of wallets appeared and I selected Trust wallet
  

• And my pancakeswap exchange was successfully linked to my trust wallet.
  

To perform staking in Pancakeswap, I would have to swap my BNB coin to Pancakeswap native token which is CAKE.

• After that I approve the swapping.
  

How did I perform the staking?

• I clicked on the drop down menu on the top left hand side of my wallet, and I located the Pools.
  

• I selected Auto CAKE stake, and I Enabled the pool;

• I then clicked on stake, and then I confirmed it.
  
  

• As you can see in the screenshot below my cake has been staked.
  

Here's the screenshot of the APY👇

APY = 100.38
Staked Amount= 0.32144 CAKE

With the current rate, after 365 days I would have ≈ 0.129 CAKE ($1.80)

Question 2

Pick 3 cryptocurrencies and perform a 7-day and 30-day technical analysis. Draw trend lines and describe whether the coins are in a continuation or reversal pattern. Take screenshots.

Answer

I will be picking Doge, Alpha and Rose crypto coins

7-day Technical Analysis on Dogecoin

As you can see on the chart above, there was some accumulations at point 1, before and uptrend took place. There was a little selling pressure between point 2 and 3. The price reversal began from point 3, that lead to a downtrend and selling pressure.

30-day Technical Analysis on Dogecoin

There was a continuation pattern from point 1, there was later an increase in buying pressure, that lead to an uptrend. The reversal began from point 3, that lead to a downtrend.

7-day Technical Analysis on Alpha cryto coin

After a little accumulation from the beginning, there was a continual Uptrend (continuation pattern) at point 2. There was a reversal from point 3, that lead to some ups and down trend between point 3 and 4. And if you observe careful, you would discover that a shoulder pattern was formed. Check out the neckline in point 5.

30-day Technical Analysis on Alpha cryto coin

There was a major buying pressure that lead to an uptrend from the beginning, and then a reversal took place that lead to a decrease in price.

7-day Technical Analysis on Rose cryto coin

From point 1, there was a massive buying pressure, and just a little selling pressure in the process. A reversal took place from point 2, that lead to a massive decrease in price and trend.

30-day Technical Analysis on Alpha cryto coin

Point 1 is a good example of continuation pattern, because there was an Uptrend without pullback. There was a reversal at point 2, that lead to a decrease in price.

Question 3

How can we differentiate a bearish season from a bullish season in the market?

Answer

The two major seasons/trends in the crypto market includes Bearish and the Bullish season/trend.

A Bearish Season:

This refers to a downtrend in chart, which indicates the selling pressure/rate of the market, in a particular period of time. In most cases, it is represented by either red, orange, or black color, depending on the traders choice.

While
A Bullish Season:

This refers to an uptrend in chart, which indicates the buying pressure/rate of the market, in a particular period of time. In most cases, it is represented by either green, blue, or white color, depending on the traders choice.

Final Words

It is very important for crypto currency traders/students to understand how the various price patterns function, so am grateful to our professor for bringing this lecture, and breaking it down to our understanding.

I have got to understand that staking is as good as mining, because it can help a crypto holder to earn higher APYs than in our traditional accounts.

Basically, cryptocurrencies are usually unpredictable, but with proper understanding on Technical Analysis, a trader can easily know the best time to go in, or out of the market with profits.

Thank you for your time.