Homework Task: Why Technical knowledge is Important in Crypto Trading? || by @sammylinks || 100% power upsteemCreated with Sketch.

in SteemitCryptoAcademy3 years ago

Hello everyone
I'm very delightful participate in this homework after the powerful lecture: CRYPTO AND ITS TRADING from our intellectual professors like @stream4u on this our wonderful community.

WHY TECHNICAL CHART IS IMPORTANT IN CRYPTO TRADING?

After analysing the data, the information is presented professionally as a Technical Chart. Technical charts is a diagrammatical representation of analysed data or the intersection of price cap with the volume and value of coin that is trading.
This technical chart can come in several forms:

  • Bar chart
  • Histogram
  • pie chart
  • Line chart
  • candlesticks

WHY TECHNICAL CHART IS IMPORTANT IN CRYPTO TRADING?

images (20).jpegImage Source

Technical knowledge is an analytical tool, or method used to predict the probable future price movement of a investment – such as a stock or currency pair – based on market data.

The theory behind the validity of technical knowledge is the notion that the collective actions – buying and selling – of all the participants in the market accurately reflect all relevant information pertaining to a traded security, and therefore, continually assign a fair market value to the investment.

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

What is Uptrend?

An uptrend describes the price movement of a financial asset when the overall direction is upward. Uptrend in the market indicates that the price has gone up, in another words said to be bullish. Here is not the rightful time for an investor to buy but the best time to sell assets to maximize profit.

images (21).jpegImage Source

In an uptrend, each successive peak and trough is higher than the ones found earlier in the trend. The uptrend is therefore composed of higher swing lows and higher swing highs. As long as the price is making these higher swing lows and higher swing highs, the uptrend is considered intact. Once the price starts making lower swing highs or lower swing lows, the uptrend is in question or has reversed into a downtrend.

What is Downtrend?

images (1).pngImage Source

A downtrend refers to the price action of a security that moves lower in price as it fluctuates over time. While the price may move intermittently higher or lower, downtrends are characterized by lower peaks and lower troughs over time. Investors pay attention to downtrends because they represent something more than a random losing streak. Investment in a downtrend seem to be more likely to continue trending lower until some market condition changes, implying that a downtrend marks a fundamentally deteriorating condition. it is the appropriate time to buy a coin during downtrend and sell when the price goes up at uptrend to maximize more profit.

STEEM CHART

IMG_20210213_222313_408.jpg

The screenshot of My Trade of STEEM/BTC on Poloniex

With the right technical knowledge that equip me right now, I well know that it is UPTREND which will not last long, I will sell all my STEEM to maximize my profit and wait till DOWNTREND I will buy more at very cheap price.

Thanks to you, my professor @stream4u and worth of mention:
@steemcurator1 , @steemcurator2 and @steemitblog.

All the pictures used are copyright-free and sources stated except my screenshot with my phone

THIS POST IS AT 100% POWERED UP

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Superb post bro👍

You did a great job with your breakdown on the know how of Crpto trading

 3 years ago 

Thanks.

Our professor @stream4u did a great job in that lecture.

@steemit, a wonderful team that create the academy for our common good.

Ofcus

Thankyou bro @sammylinks for sharing this knowledge with us.
Technical knowledge is really important to crypto trading. I can't wait to learn more from you.
#affable

 3 years ago 

You are a good student like me as we learn from our professor @stream4u. Thanks for reading

Thank You For Showing Your Intrest to learn Crypto Trading Technical knowledge.

You have completed the homework task and made a good post, explained very nicely about why Technical knowledge is important in Trading and How to read and understand Trading charts?

Remark: Homework Task Completed.

Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy

#india #affable

 3 years ago 

Thanks you for impacting the knowledge and to @steemcurators for guidance.

#nigeria #affable

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