Steemit Crypto Academy Season 2,Week 2 ||home task given by@stream4u Price Forecasting

in SteemitCryptoAcademy3 years ago

Greeting everyone:
how are you I hope you are well friend. this my homework season 2, week 2.this well explained lecture delivered by respected professor @stream4u. Now I am going to write my homework.
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Q.no.1:What is price Forecasting?

Ans: Price Forecasting is one of the techniques that we use to make a estimate about anything.this is the one we use to predicted the determining the direction of future trend. determine the future value of coin or assets.price forecasting is predicting product price by evaluating various factors like quality,demand.price forecasting anything will give profit or loss in future.forecasting do in any business , price of any asset or trading whether this profit and loss in future.we should be knowledge market.knowledge of market play important role for price forecasting because the trading,business asset value in future increase or decrease.forecasting mean to predict or calculate value of asset decrease or increase.

Q.no.2:Discuss on why price forecasting is needed?

Ans: in simple words we invest money on trading ,business or assets whether or not it will increase or i will profit or loss in it in future.we need the price forecasting to determine the value of any asset in future will increase or not. utilize the forecasting to determine how to allocate their budget for anticipated expense for upcoming of time.forecasting is needed to predict or calculate the value of any asset.trading is depend upon the price forecasting.because value is calculated.price forecasting is needed to to determine the value of asset sell or buy asset easily.

Q.no.3: what method are best you feel for price prediction/forecasting:

Ans:there are different method for price forecasting.these method are following describe:these method are used for analyze the market:
1:Technical Analysis:
2:Fundamental Analysis:
3:Sentimental Analysis:

1:Technical analysis:

in simple words, if we talk about technical analysis, trader the believe of the technical analysis that what happend in the past will influence future market movement:trader rely on trend and chart analysis.Support and resistance levels are used to determine whether buy or sell a currency.charts represent price movement.there is no guarantee that past performance will have an effect on future result:

2:Fundamental Analysis:

in simple words fundamental analysis is used investor to established the intrinsic value of asset.the main purpose is to determine whether asset or businees is overvalued or undervalued.fundamental analysis evaluating an investment to predict its future value.intrinsic value that is not reflect in current market price.

3:Sentimental Analysis:

currencies volatile on day-to-day basis.the market always tend to move against the sentiment analysis,sentiment trading by itself is quit risky. uninformed traders may be moving the market prices away from fundamental values.the trader invest against the view of market.

which method is best?I

in three methods the technical,fundametal analysis is better and these two analysis is used in market.this two analysis is helpful in trading any businees or assets.

Q.no.4:Take any crypto asset chart graph and explain how to do price forecasting?ORtake any crypto assets chart graph as per its current price.

Ans:
in this section i will explain the graph chart.

Head and shoulders is a chart pattern that be distinguished by its 3 peaks; with one large peak in the middle and two smaller peaks on either side. The pattern signifies a reversal in trend and therefore can be used to help determine when a bullish trend is coming to an end.
As can be seen from the BTC/USD chart above, a head and shoulder pattern is formed followed by a dip in price.

image.pngsource
in this screenshoot a cryptocurrency patteren graph upward and downward if crypto is consistently higher and higher price targets, then it is considered to be in an uptrend. Conversely, if a crypto is consistently hitting lower and lower price targets, then it may be in a downtrend.
Capture.PNGsource

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