Steemit Crypto Academy Season 3: Week 5 Homework (by @imagen) | Market Patterns and Blockchain Projects

Hello Steemit Crypto Academy,

Professor @imagen handled the essential homework topics of this week. I will try to explain the questions in the homework in detail. Thank you, Professor, for working on this issue. I learned a lot of new information.

Source: Canva

Introduction

For the first time, I had the opportunity to share my cryptocurrency investment with this homework. I made this investment with my Paribu wallet. I hope I was descriptive in my first answer. I am sorry that I can not use Binance wallet because it still looks pretty confusing to me. Trading with CHZ is enjoyable. Thanks to this assignment, I got new information about CHZ.
After that, I will quickly notice whether there are Evening Star and Abandoned Baby when I examine the graphics. Finally, it was nice to observe different patterns from the movements of BTC in recent days. I want to thank Professor @imagen for helping me do this informative homework.

1.) Choose at least 1 of the following cryptocurrencies.
• Axie Infinity AXS
• Chilliz CHZ
• Cardano ADA
• VeChain VET
Make an investment of $ 12 or more. Show screenshots of the process.

I will use my Paribu account to answer this question as I do not use a Binance account. I will do my transactions in Turkish Lira (TL). At the time I prepared the assignment, the USD/TRY rate is trading at 8.49 TL. In return for $12, I will invest approximately 110 TL.
Among the four cryptocurrencies you mentioned in the question, I chose CHZ because I have traded with it before (VET and AXS are not available in Paribu wallet). First, let's take a look at CHZ's chart for the past week. It looks like a wavy course. There is the resistance between TL 2.10-2.20 TL.

Figure 1. Graph of CHZ for Last Week

Source: Paribu

Then I opened the buying order page and bought 53 CHZs for 2,1356 TL.

Figure 2. Buying Order Page of CHZ

Source: Paribu

As you can see in the photo below, I have 53.1 CHZ in my wallet.

Source: Paribu

Why did you choose this cryptocurrency?

Chiliz (CHZ) was founded in 2012 in Malta. CHZ, which came to the fore with its partnerships with sports clubs, continues to invest in new areas.
The start of football matches was instrumental in my investment in CHZ. Alexandre Dreyfus, the company's CEO, explained that they attach importance to investments or partnerships in football. These words of Alex give hope for 2021: “2020 was a massive year for us. 2021 is going to be even bigger for Chiliz CHZ, Fan Tokens and Socios.com.”

In addition, I can access up-to-date information on new investments in this field on the Twitter account of socios.com company belonging to the first fan influence & rewards application.

What is it Market Capitalization?

To answer this question, I visited CoinMarketCap
Market Capitalization of CHZ is $1,475,433,663 (Current Price x Circulating Supply: $0.2501x5,89B)

Figure 3. Market Capitalization of CHZ

Source: CoinMarketCap

What is it position in the cryptoasset rankings?

To find out the ranking of CHZ, I typed CHZ in the search section of the CoinMarketCap. According to the result, CHZ's cryptoasset ranking is #60.

Figure 4. The Cryptoasset Ranking of CHZ

Source: CoinMarketCap

What is the objective of the project behind this coin? Who founded this coin? Show the roadmap.

The motivation to support sports clubs comes first in the establishment of CHZ. As we know, clubs are awakening to the enormous potential and CHZ can offer them and they are geared towards success. The founder of CHZ is Alexandre Dreyfus.
According to Dreyfus roadmap of CHZ;

Figure 5. Roadmap of CHZ

Source: medium.com

What is the specific purpose of the cryptocurrency?

CHZ team is working hard to add more football & esports partners to our roster of ‘tokenized’ platform partners, aiming to add 100s of teams in the coming years. They are also in the process of onboarding other sports (not only football).

2.) Explain in your own words what the "Evening Star" pattern consists of. What is its hit rate?

The Evening Star composes of three candles. Evening star Candlestick is the opposite of the morning star.
An evening star pattern is a valuable tool for technical analysis because it can predict investor sentiment and price momentum changes.
During an uptrend, a long increasing candle is followed by a green small-bodied candle. The third candle decreases have a long body and close below the midpoint of the first candle.

Source: Another Tech

I can not find the hit rate of Evening Star.

3.) Explain in your own words what the pattern "Abandoned Baby" consists of.

An abandoned baby is a low reversal signal. At times, the abandoned baby will be a bear, and other times it will be a bull. Either way, it indicates the possible reversal of a current trend. Luckily, the formation of this pattern fits its name quite well, so it is easy to detect.
The abandoned baby candlestick pattern is a three-bar reversal formation. It is similar to the morning and evening star formations. It is a very dependable reversal signal when it shows up after a sharp rise or drop.

There are two types of Abandoned Baby:
-- Bullish Abandoned Baby
-- Bearish Abandoned Baby

Bullish Abandoned Baby

The idea behind the pattern is that the price has been dropping aggressively and just had a big sell-off again (first down candle). The price then forms a doji, which shows selling is leveling off as the open and close prices of the doji are nearly the same.
Traders watch for bullish abandoned baby patterns to signal the potential end of a downtrend. The pattern is pretty rare.
The first bar is a large down candlestick located within a defined downtrend. The second bar is a doji candle (open is approximately equal to the close) that gaps below the close of the first bar. The third bar is a large white candle that opens above the second bar.
Lastly, traders may manually search for the Bullish Abandoned Baby or trade it when they see it, but they can also scan for the pattern using trading software.

Source: Investopedia

Bearish Abandoned Baby

A bearish abandoned baby can signal a downward reversal trend in the price of a cryptocurrency. This pattern is formed when a doji-like candle is preceded by a gap between its lowest price and the previous candlestick.
The doji is also followed by a gap between its lowest price and the highest price of the next candle. The following candlestick is a tall red candlestick with small shadows. In this pattern the doji candle becomes an essential signal for traders and technical analysts seeking to identify a bearish reversal of a bullish trend.

Source: Investopedia

What is the percentage correct?

I can not find it.

4.) Perform analysis for 3 and 7 recent calendar days for Bitcoin Do you identify any patterns? Show screenshots

To answer this question, I will look at the performance of the Bitcoin/BUSD chart for the last 3 working days and the last 7 working days. The patterns I will examine here are; Evening Star, Abandoned Baby, Three Line Strike, Two Black Gapping, Three Black Crows.
When I examined the chart within the specified date range, I came across the patterns "Evening Star", "Bullish Abandoned Baby" and "Three White Soldiers".

Figure 6. Evening Star

Figure 7. Bullish Abandoned Baby

Figure 8. Three White Soldiers

Conclusion

Although the last three questions seem related, I learned something new in each question in this homework. I tried to give my best performance. I got new ideas about CHZ. In a previous assignment, I shared information about candlestick charts, and with this, I reinforced that knowledge. Also, as soon as I look at a chart, I can see if there are Evening Star or Abandoned Baby patterns. For this, I thank Professor @imagen for preparing this homework.

CC:
@imagen