Crypto Academy Season Two: Week 2 – Homework Post for @stream4u | Price Forecasting By @stephenoppong

INTRODUCTION
Hello Prof @stream4u and fellow steemians, I am so much grateful for your clear and easy understanding lecture on price forecasting. This is so fantastic and very good one for any investor. It was well explained and I can say that I have really understood your lecture on how to perform price forecasting and trade/invest based on it.
I will like to present my findings on the lecture given on the above lecture. - How to perform price forecasting and trade/invest based on it.

Let’s begin then.

Now, we have all come to know that, every individual goes into business establishment with the main aim of making profit in the business in which he/she finds him/herself. There are also risks taking in every firm since you will not have everything going easy or smoothly always in such business.

One of the best way for ones business to grow very effectively is how the business person (investor) takes risks. In doing so, the investor must know that the prices of goods in every business may at any point in time rise or fall.
Whenever there is support in the business, definitely, you would have prices going up and when there is resistance, the prices drops.

WHAT IS PRICE FORECASTING?

As we have already stated in the introduction, there are risks taking in any business firm and one best way for your business to be well and firmly established is how you monitor the movement of prices in your business. In order to follow the modern trade trends or doing business, every business oriented investor needs to check for these things the firm he/she finds him/herself.

I would explain price as way to determine the cost of goods in a business firm and I would say, forecast simply in my own understanding means to determine the outcome of something.
So, when we say price forecasting is the act by which one determines the cost of assets after he/she taking into consideration so many factors.

Some of these factors could be the demand, the trends in the business etc.
In most situations, to do better price forecast, you need to do a better research and also consult a lot in order not to run loss in the business market.

In whatever way we are doing trading, as in cryptocurrency, bitcoin, Litecoin etc. the individual should have a fair idea about the business he/she is venturing into.

We have to have in mind that, to do a very good price forecast, the investor can do his/her analysis by using the following methods; fundamental, technical and sentimental methods. We will elaborate more on these methods later in this post

Every business succeeds when the owner of such business do a very good forecasting in his/her prices. It is very essential that if you do not want to run loss in your business firm, you do a good price prediction. Determining the future price of goods in your business in order to help you invest well.

One reason why price prediction is very important is that, it helps every business person to make good use of chances that he/she may come across in the business world to help invest since he/she knows the outcome of whatever he/she has invested.

Price prediction in the business field is very important because it helps the investor to determine when and where to invest and when and where not to. It also helps to make background checks on assets before going in to invest.

WHAT ARE THE BEST METHODS FOR PRICE FORCASTING?

As stated earlier in the post, there are three methods that are best for price forecast or prediction.
The three methods are listed and explained below;

1. Fundamental analysis
   In this particular analysis method, the investor, pays much attention to what goes in to the company they want to invest in. They consider some activities of the company before they will be willing enough to invest in such company. They take critical look at the financial statement of the business before they will invest into it. They also consider some factors that can lead to the collapse of the firm before they move forward to invest. The investor also takes delight in the plans set by the company and for that matter, when they (investors) are fully convinced about the assurance of the company, they then invest big time into the company.

2. Technical analysis
   In this kind of analysis, the investor considers much in the price in the company. The investor again considers the movement of price in the company. He/she checks for how the price in the company moves before he/she will invest in such company. Here, the analyst have to be very careful and always monitor the above stated conditions in the company to help him know when to invest into the business and when not to.

3. Sentimental analysis
   The last I will be talking about is the sentimental analysis. In this case, the analyst pays much more attention to what people say. The analysis made with reference to this tool is mostly based on news items, media stations etc. In all, it should not be looked down upon since one can also come out with a better analysis in the method and at the end of the day may benefit such individual.

EXAMPLE OF PRICE FORECASTING

At this point, I would like to use chart pattern to explain how to do price forecast with the help of various tools and I will use some screenshots taken by myself to back this.

Screenshot taken by myself

From the graph above, I have created levels that indicate the resistance of the graph. From the left end side of the graph it raised reasonably breaking the resistance at level 4 turning into support moved to level 3. The rise and fall of the price moved in range.

Let’s get to my prediction. Since the price moved in a range for some period of time it has the power to shoot it up in an unexpected manner. As we can see the price already start to rise a little bit from level 3. At least the price will rise to level one or even more higher. We shouldn’t forget that it might also go back down to level 5. We are dealing with probability here so we go with the one with higher chance of happening. So I’m going with the price rising higher. This is a good chance to invest into the token.

To conclude, I will say price prediction/forecasting of an asset is very necessary for every investor who willing to invest in a particular business. Every business comes with its own risk and terms, therefore the investor has to think out of the box before going to o=invest in any business firm. When the investor takes his/her time to do proper prediction in price, he/she will definitely make good profit out of such business.

I really appreciate @stram4u for the very good topics you always deliberate on in this community.