INTRODUCTION

I am so delighted making my first post to the @crypto-academy community, as well as participating for the first time in the Steem Crypto Academy. This is a good initiative by @steemitblog and I believe every student under this program will come to learn a whole lot about crytpos and how to invest wisely.

Meanwhile, I had participated in the lecture by Professor @stream4u, our Indian Professor. He spoke on Why Technical Knowledge is important in crypto trading, you can find the original lecture here. So I am back with my home work submission.

Source

HOME WORK SOLUTION

We have 4 questions to answer from our home work here, which includes:

• What is the role of a trading chart.?

• Why do you think Technical Knowledge is important.?

• Uptrend and downtrend, which one is good to buy a coin.? Explain why...

• Check any crypto coin technical chart and explain what you find/understand from the chart with screenshots.

The Role Of Trading Charts:

Basically, trading charts can be said to be the foundation of technical analysis. It is a graphical representation of the assets price movements.

• Trading charts are used to study the past price movements of assets in an attempt to anticipate a future movement in other to make wise investment decision.

• Trading Charts is generally used to determine the directions taken by assets based on their past daaqata.

• Trading Charts are used to identify signals based on the market sentiment, providing a visual analysis of market sentiment, psychology and potential weakness.

The Importance Of Technical Knowledge:

Before one will invest in crypto trading, technical knowledge is a very needful tool. One can't just start trading blindly without a good knowledge of the environment, else there will be losses.

Basically, below are some of the Importance of technical knowledge.

• Technical knowledge will act as a good guide to understanding the market, the price movement of assets as well as the prize actions.

• It will enable the investor to know at what point to invest on an asset, as well as which coin to invest on.

• Technical Knowledge will also be a guide as to when to exit the market in other to avoid subsequent losses of investment.

• Without a technical knowledge, an investor is likely to be trapped in the bulish trend and encounter losses at the end, basically technical knowledge enables one to avoid huge investment losses.

Uptrend and Downtrend:

It is safer to buy coin during downtrend, these are my reasons;

Uptrend

Uptrend shows when the price of assets are moving upwards or getting pretty high. In Uptrend the price keeps moving high till it gets to the chart's peak. Uptrend only gives investors the opportunity to trade and make profits by selling at a higher rate.

Downtrend

This is basically an opposite of uptrend. This is when the price of asset is continuously moving down. Here general direction of the chart is just down down.

So I will basically buy at downtrend and sell at Uptrend to make profits.

Steem Chart from my binance wallet.

This is a technical chart of Steem in my binance wallet account.

As we can see from the above chart, Steem is pretty high right now. It added by 29.81%.
Steem is basically at it's Uptrend mode right now. It is going up as the day goes by. It is very risky to buy now, this is the point to trade and make profit.

As we can see, the bullish candle stick where the trade is right now, which indicates high rate.

From the above chart, it is high at 0.00000760 and low at 0.00000561.

Basically, this is an Uptrend stage, Steem is at it's peak right now and there is a possibility of going higher, so this is the time when investors makes profit from their Steem investments.

@stream4u, this is the entry to homework.

@steemitblog, thanks once again for this initiative, I learnt a lot from this lecture. Exepct my subsequent entry.

cc: @steemcurator01
cc: @steemcurtaor20
cc: @stream4u

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