Crypto Academy Week 1O -Homework Post for @stream4u Price forecasting by @shafew

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Hello members in this community.First of all i want to thank professor @stream4u for such a wonderful lecture.

                       WHAT IS PRICE FORECASTING

Price forecasting is a technique that uses historical data as inputs to make informed estimates that are predictive in determine how to allocate their budget or plan for anticipated expenses for upcoming period of time.Price forecasting is predicting a commodity or product of prices by evaluating various factors like its characteristics,demand,seasonal trends,other commodities prices from numerous suppliers.Price forecasting is always based on its fundamental analysis,technical analysis and sentimental analysis .

   WHY PRICE FORECASTING IS IMPORTANT

Price forecasting is very important because all market participants would use price forecast to make informed decisions.Developers and investors can evaluate expected return on investments into assets and can choose appropriate time purchase,find a property with a characteristics that meet their needs.Effective price forecasting helps helps businesses predict when necessary price increases or decreases may affect customer demand.Below are some reasons why Price forecasting is important.

1.Price forecasting helps set goals and plan.Price forecasting allows businesses set reasonable and measurable goals based on current and historical data.Having this goals helps to evaluate progress and adapt business processes where needed to continue.

2.Price forecasting reduces cost.Price forecasting helps companies reduces cost by providing companies the foresight to not order more stock than necessary to fulfill customer orders.

3.Price forecasting helps anticipate change within the environment.Having insight into not only the current data but the project of what could happen in the future helps businesses strategy and alter current operations in order to change their outcome.

WHAT ARE THE BEST METHODS FOR PRICE FORECASTING
1.Technical analysis:Technical analysis is the study of the price of movement and patters of a security.By scrutinizing a security past price action,primarily through charts and indicator,trader scan forecast future price prediction.This include moving averages,Bollinger bands and more.All the tools have the same purpose to make understanding chart movements and identifying trends easier for technical traders.

2.Fundamental analysis:Fundamental analysis based approach to stockmarket forcasting involves technique such as calculating the weight of financial indicators evaluating and selecting financial news features determining stock trading signals based on financial news,and forecasting stock price trend.It examine related economic and financial factors.The end goal is to arrive at a number that an investor can compare with security current price in order to see whether the security is undervalued or overvalued.

3.Sentimental analysis:Sentimental analysis is very important for companies for having a demand forecasting considering global trends and sentiments.Sentiment analysis is a perfect addition to all technical parameters you use to access price forecasting market performances.Sentiment analysis have an effect on short term price fluctuations.This helps people to make money and loose money too.

Take any Crypto Asset Chart graph and explain how to do Price Forecasting? OR Take any Crypto Assets Chart graph & as per its current price tell us what will be its future price for next 1 week or 1 month? You can predict for any direction up or down but explain it properly on what basis you have predicted the price

This is a current graph of bitcoin.I want to use bitcoin because it is was i have a bit of idea about it.Now if you observe the graph closely

Mostly it is not easy to predict because not everytime you can be observing the chart or u might miss a global news which can also not help in predicting.But before you can predict the price within a few hours or week,you first have to observe the graph.Now in the beginning of the graph we can see that the graph is at the midpoint thet means is not that raising.As we continue to observe you realize that when you check the gradient level is just decreasing with time.From the graph the more the people buy the higher the chances of it raising base on the principle of supply and demand.

Conclusion
In conclusion Price forcasting is a bit difficult,but is should however be acknowledged.But once yu use the best methods is going to be easy.To me i prefer technical analysis because its helps you to study the price movement and predictons before you buy or sell.

This my first time learning about Price forecasting thanks to professor @stream4u.You have made me learn a lot.Thank You.