Hello steemians,

Am happy to be a part of this week crypto academy lecture. Thank you professor @stream4u for the lectures, it was detailed.

After reading the lectures and doing my own research am here to do the home work given afterwards.

QUESTION 1

what is price forecasting?

Price forecasting is trying to use a handful of information or data to predict where price is currently going either up or down, and price forecasting can work on anything that works on graph charts or price action...

Let me define price action briefly so we can understand what it is all about,now price action can simply be defined as the way price moves from one point to another in a chart used to analyse prices of different asset which includes stocks, crypto currencies.. But we are going basically concerned here on crypto, successful traders basically make use if price action .

QUESTION 2

Discuss on why price forecasting is needed

Price forecasting is very important and needed because you it helps and gives you a clue where price is coming from and where price is going to, let me explain this briefly, The price of any asset moves in two (2) ways basically
1.. Price moves up ( buyers)
2.. Price moves down ( sellers)

So it is very paramount you know where price is going either up or down so that you can follow What price is exactly doing , imagine buying where the big boys or banks or even institutions are selling , such can be catastrophic,
So price forecasting helps you to know the direction at which price is going and follow the direction and trend of the price

Price forecasting is very vital in predicting the success rate and failure rate of a firm, organisation, banks , etc

Also price forecasting also helps us to know the progression and regression of prices to a particular commodity,stock , especially to know the supply and demand of a particular asset.

QUESTION 3

What method are best you feel for price prediction/forecasting?

There are basically 3 methods we can use to do price forecasting or price prediction

• Fundamental analysis
• Sentimental analysis
• Technical analysis

Am going to be explaining these 3 method of knowing price prediction

• fundamental analysis
  This works base on news " crypto news" released in the market , anytime there is a major event on any crypto asset or currency, it might be a positive news or a negative news . this news in a way will affect price , either to make price to go up or down
  Let me give a quick example, early this year a popularly known billionaire announced that he was going to invest $1.5 billion in bitcoin , and price pumped higher therefore attracting other investors and bitcoin rose higher than its previous price, so fundamental analysis basically works on world event news, major happenings around the world..

• sentimental analysis
  Sentimental analysis works basically on emotions, feelings, guess work.. This is usually a bad way to trade..

• technical analysis
  This analysis involves price action using different tools to tell where price is headed, either up , down or sideways... This method is best for predicting what price will do
  There are some vital tools we can use for technical analysis , time frame correlations, supply and demand zones,support and resistance , indicators, candle stick patterns , fibonnacci tool retracement etc
  This tools combined together will give u a better prediction on the next movement of price

From my conclusion the best analysis is technical analysis, because to enter/know the next place price will get to we need multiple confluences, because if you depend solely on fundamental analysis, price prediction may not get to your where you want it to get to and a lesser probability. But using technical analysis with multiple confluences gives you a higher probability of where price is headed.

QUESTION 4

Crypto asset graph explaining how to do price forecasting.

source:
Downloaded trading view app, showing ethererum/USD graph.

From the graph notice that ethereum USD has been in an up trend so price has been in an up trend for a while.

I drew and spotted my support and resistance zone and i used a trend line to show my resistant and support zones and each time price breaks my support zone, it turns to a resistance zone.

When price breaks my resistance zone, price comes to test the resistant zone ( price retraces back to test the zone before going back up) pushing back up to form another high which becomes another resistant zone and my previous resistant zone becomes support zone.

CONCLUSION

Price forecasting is a great to for successful trading. And its importance can not be over emphasised.

Thank you for reading.

Regards

@steemitblog