INTRODUCTION

Hello steemians, I am very delighted to write my homework post for this week and also using this opportunity to say a very big thank you to prof @stream4u for this wonderful lecture this week.

Question 1 and 2

What is Price Forecasting and at the same time why it is needed.

Price forecasting is a technique with the help of which a user perdicts the future price of an asset. In other words, Price forecasting is predicting a commodity or service price by evaluating various factors like its features, demand, Seasonal or yearly trends and other commodities prices.

price forecasting helps in trading and also helps in the analysis made by the user. These analysis are carried out with the help of Technical, Fundamental or Sentimental methods.I will like to elaborate more on those methods that later.
Price forecasting is a method which helps the trader gets the clear view of the market trend. It helps in getting clear picture(idea ) of the market as to when to enter and when to exit the market.

In the world of trading, price forecasting play a very vital role. Without forecasting, it will be very hard of trades to trade in the market and also trading will almost be impossible and it can lead to too much loss for the trader.
When it comes to trading a cryptocurrency or any other assets,trader has to analyze the market first, also look at the ups and downs of the market before purchasing an asset. Proper trading can only be done with price forecasting.
So market analysis is very important to secure investments and a result of this analysis, we get a price forecast.
Also l, price forecast also enables to perform multiple trades at specific points rather than waiting to get huge profits.
Example, buying at lowest value is an opportunity for the investor because, when the investors buyers at lower price, he or she predict in the next months or years to come so that if price increase, he or she will now sell to make profit and Taking profits is always a good idea because, it increases capitals of the investor.

Price forecasting can benefit a trader or investor not only when the market is bullish but also when it's bearish.
For example, if an investor is base on price forecasting on technical analysis having drawn his or her support from the past price history of that particular asset, he or she can be prepared to position him or her self to buy order and also prepare to sell it at an already drawn resistance line( when there is no price breakout).

If you eventually sold at that resistance, you can also position yourself for another buy after making a profit from the first one.
To make things short, price forecasting helps you employ the opportunities in an asset trading having properly carried out your analysis to predict the price of an asset.

Question 3

There are three different methods that are used to analyze the market. These methods are given below.

1. Technical Analysis.

In this method, traders/ investors analyse the market with the help of technical indicators such as Moving averages, Chart analysis,trend changing indicators etc
Technical analysis it is basically a keen observation of market components which include price movements, chart patterns, bearish-bullish trends, market support and what else market holds. A technical analyst should keep in mind the above mentioned components and as well as the entry and exit point of the market.

Example, a trader enters the market to buy an asset at support level and exits the market by selling that asset at resistance level. These can be termed as technical analysis.

1. Fundamental Analysis.

In this method, trader does not look at chart patterns and he or she evaluates the market by look at the factors that can increase the value of an asset. These analysis are usually carried out on the basis of financial statements of an asset and other external factors that can increase the future price of that asset.
So fundamental analyst don’t seek market trends but scrutinize the working capability, capacity and liability of the company in trade.

1. Sentimental Analysis

In sentimental analysis l, trader analyse the market based on the information they get from sources like example, news agencies, financial reports, surveys, media etc. In these situations, market moves very fast in such way that, traders earn or loose in very short time.
trader tries to understand the sentiment of the general traders, whether it is positive or it is negative.
This method is usually used in addition to Technical or Fundamental analysis and it can also be very helpful in analysing the market.

The best methods among the three

Technical and Fundamental analysis are the two main methods that are used to analyse market, but Both play a very important role and these are very helpful in trading any asset.

But looking at the 3 methods, to me, Technical Analysis is the best among the analysis. as it has provides to be very valid and are being used for years by the traders.

Question 4.

Now I will like to talk about Ethereum as per its current price and predictions on what the future price would be for a week or a month.
But before i start, I will be look at price forecasting based on technical and sentimental analysis,here predictions of prices are based on multiple chart patterns,trend indicators,price movement,news,discussions and many more.

Ethereum chart as at 27th May 2020 the price was $ 0.04209061 but after 25 December 2020 the price was pumped $ 625.18 at this level was the ideal time for people to have invested in Ethereum.

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So as at 25 December 2020, the price started to go higher and higher.
So looking how the price is going, here I will sell in respect to its chart pattern and the goodwill it’s got related. The reason why am to sell is that;
If you hold and the price goes down again your holding effort has wasted and you best tell weather it’ll still dip or even go down further or not and from there it will be your lost.
But if it happens that you hold on for more weeks or months if possible then and the price go higher and higher, then is your profit.

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As at 23 February 2021

So in conclusion my predictions on Ethereum for a week would be ranging from $ 3000 there about and if if it should drop it’ll also be at $ 2000 ranging and so
Far as there’s demand the price of it increases thus yielding more profit for those that invested earlier.

I will like to use this opportunity to thank the professor @stream4u for his wonderful lecture this week. I really learn a lot from his lecture and I hope my homework task will be accepted and review thank