Crypto Academy Week 10 Homework Post For @stream4u [All About Price Forecasting]

Hello all....

Today I will try to do the homework given by professor @ stream4u which is all about price forecasting

Price Forecasting

source

As an investor or trader, price forecasting is one of the most needed, before investing, of course we as investors want to have big profits. So if we invest without having good preparation and planning, the opportunity to get profit will be slightly reduced. Usually forecasting the price of an asset to invest can be predicted by reading the crypto asset chart. Although it can be said that our price forecasting is not working as expected. However, if you are used to it, of course an investor will be able to predict the increase in the price of an asset properly so that it will get the profit as planned.

There are several analysis methods to predict prices, namely:

1. Technical analysis, technical analysis is usually carried out in the short term, this analysis is very suitable for traders, this analysis is more focused on monitoring the price movements of an asset, traders can look for data needed to perform technical analysis such as charts, market prices, total transaction volume, outstanding supply and other displayed data on the asset. So that traders can find the exact time when they will trade the asset.

2. Fundamental analysis, Fundamental analysis is usually carried out over a long period of time, this analysis is very suitable for investors. This analysis usually monitors aspects other than price, such as the readiness of a company involved in the asset. Such as the company's income statement, company quality, company activities and other things that we think companies related to these assets are suitable as a place to invest.

3. Sentimental Analysis, Sentimental Analysis is an analysis that we can see from various media as well as news that is constantly being updated. With the media, of course it can influence market conditions. So as investors and traders this analysis must be used to get some information so that we better know what steps to take in the future.

Why is Price Forecasting Needed?

source

After we know some analysis in price forecasting, this can be used as a reference for investing. Investors and traders can also predict future price declines and increases so they can make the right decisions and get the expected profits. In predicting the price of an asset to be invested in, an investor must be able to see when the time is right to buy the asset, or sell the asset, and to hold it temporarily. If our price forecast is successful, we will definitely get a big profit.

Conversely, if we invest without price analysis or forecasting, then our investment will be in vain because these are all very important aspects of investing. As an example, imagine if we invest without first studying a company, we might get fraud, or we don't study charts and prices, the chances of getting a profit are getting smaller.

The Best Method for Price Forecasting .

source

Actually, in forecasting the price of an asset, we must be able to combine several analyzes in making price forecasts, by combining the three methods, the opportunity to get profit will be even greater because we review various aspects before investing and making decisions in our investments.

In my opinion, technical analysis is a method that is very suitable to be used as price forecasting because we can learn directly from the asset data. As we can immediately predict the price from a chart which has been updated every time. From the graph it is easier to make a decision what to do next to make a profit.

Price Forecasting from One of The Cryptocurrency Charts [Ripple (XRP)]

source

Well, I will try to predict the price from the chart that I took from one of the cryptocurrency assets, namely ripple. This is a chart of the ripple in the past month. The blue line that I line is from resistance while the red line is support, before that I will explain the difference between the two.

1. Support is a limit on a change in a chart from decreasing to increasing.
2. Resistance is a limit on a change in a graph from up to down.

As from the data that I show from this data, I took the example of support at 1.5 USD and resistance at 1.25 USD. in technical analysis, there are several principles in the pattern of a chart, namely a chart moves in a certain pattern and the chart will repeat movement patterns in the past. So if we look at the movement of the chart pattern above, we will see a pattern of increases and decreases that are almost similar. So you can say the principles in the technical analysis method are in the chart pattern above.

The chart is currently showing at a price of 1.05 USD on April 25th, so I predict the chart will support 1,125 in the next one or two days, meaning that you can say this is an opportunity to buy the asset for short-term trading.

---

That's all my homework, hopefully it can be useful. Thanks......

Cc: @stream4u
Cc: @steemcurator02