Why Technical Knowledge is Important in Crypto Trading // Homework Submitted by @simonnwigwe

Source
Hello guys,
I want to appreciate sincerely they Steemit managers, I mean those in they realm of affairs, these is no doubt a place to be. The platform has in it wisdom provided these amazing and rear opportunity to me via its professors. How would I have know much on crypto without these amazing professor. To @stream4u I appreciate you so much for your wonderful lecture it's really impacting.

Without much time wasted, here is they little I have done on my home work sir. Please I would love to learn more from you as time goes on.

The Role of Technical Chart in crypto currency

They role of technical chart in crypto currency can not be overemphasized, reason is that one can not actually do well in crypto without understanding these chart.

One cannot forcast the future or predict how trading will be, but with the help of technical chart which forcast investment and trading opportunities by gathering information of the past trading activities such as the price movement, action and the volume in other to anticipate the future price movement of an asset.

• It also helps to determine which direction an asset should take, by using an asset's historical price, such as its open, close, high and low price to construct a chart.

• Technical chart such as the Japanese Candlestick chart provides a clear indication of how sentimental and psychological the market is, and also its weakness. It also help to know movement of price.

• It also indicates the direction of the market, in other to know when the market is at Bearish (which shows a down price) and when is at Bullish (which shows up price).

Importance of Technical Knowledge

Technical knowledge is they basis to anything at all in they world, most especially in these field of crypto currency. No matter how good you are, you still need a mentor to guide you through some things.

In these case, technical knowledge saves as a guide that will help one to understand the market and its trend, the price movement and as well the actions.

Understanding the market, price movements and actions will enable one to know when and what time to invest, the coin to invest with and to know when to exist from the market to avoid losses.

Once you have the technical knowledge, the possibilities of getting trapped in the bullish trend and making lost in the Crypto world can be minimize or completely avoided.

Uptrend and downtrend

Just like every other thing in they world, Trading is usually not stable, it fluctuates either up or down hence they term uptrend and downtrend.

Uptrend in the market indicates that the price has gone up, which is 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.

Downtrend in the market indicates a downfall of price and it is the appropriate time to buy a coin and sell when the price goes up.

Right time to buy a coin

Everyone on earth who is a business man or woman never do his or her business to loss. Hence if I am to buy a coin, i will buy a coin when the market is downtrend because the price has gone down, that is when the market is bearish. Then with the help of my technical chart, i will watch the market trend to know when the price will go up in other to sell my asset to maximize profit and minimize some lost.

Based on this Ethereum technical chart above, as at 7th of February, price was around 700,000 but looking at it today been 13th of February is at 800,000 indicating s serious increment.

If i want to buy a coin, i will buy now then watch the market trend carefully in other to sell when the price goes up and it seems the price is increasing.

My appreciation to u sir @stream4u for these wonderful opportunity, I do hope to hear and learn more from you.

Thank you...