Hello, a friend's here's my first Crypto homework given by our crypto professor @stream4u.

1. What is the role of a Technical chart?

Edited in Photoshop with a random picture on the Internet

A technical chart is very important in both the crypto market as well stock market. The technical chart is the chart where we can find the sort term movement of the particular crypto coin or stock. the chart of long-term performance is also can be a technical chart but mostly it preferred in the fundamental analysis, not in the technical. the time fame of technical chart starts from the day, then a week and then after that a month. chart of a year is considered as fundamental.

2. Why the Technical knowledge is important.

Source

As we know for making a profit in the market where it is the stock market or the crypto market is very important and for that we first need to understand the nature of the particular asset(stock or crypto) whether it is bullish or bearish. So technical chart is the chart from which we can get to know that whether the particular coin or stock is in an upward trend or down word trend. with the help of a technical chart, we can predict the next movement of the coin or stock, and also with the help of a technical chart, we can make a good profit as well as we can also reduce our losses too.

3. Uptrend or downtrend, which one is good for buy a coin, explain why?

Buy a coin in an Uptrend or downtrend is completely depends on your investing strategy.

Source.

If you are investing for short-term profit then investing in an uptrend is a good option. for example, you want to invest in some XYZ coin which is currently in an uptrend when you invested its value is 1$ and since it's uptrend for sure it will go up and next time possibly it can reach to 1.5$ so at that time you can sell it and make a 50% profit in just a day.

If you are investing for the long term then according to me downtrend is a better option. for example today I buy an XYZ coin which is in a downtrend. I buy 100 for the value of 2$ each next day since it's in a downtrend it's price came down to 1$ at that time I buy more than 100 coins at the price of 1$ now I have a total of 200 coins at the price of 1.5$ each. Buy this we can reduce or losses and if it's a good coin then definitely it goes up some time at that time you have a good amount of the coin in your wallet.

4. Technical chart of Algorand

Algorand is currently in the upward trend.

Screen short of a chart of Algorand from Coingeco Website

This is a technical chart of Algorand of the time frame of 2Hr. I applied one indicator to the chart named Bollinger Bands. This is one of the easiest ways to buy and sell any coin.

Same Above chart with edited in Paint

You can see the range of the Band so you just bull the coin when the price of the coin is nearest to the lower band and sell when it's nearest to the Top band. This not work all the time but many of them and also with this you also need to put a look on som,e other aspects also.

So this is all by my side.

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