Hi hi to all my friends today I am doing another homework for the steam Crypto Academy I hope that you will find some value in my homework post special thanks to the professor for an amazing lecture it was very simple and easy to understand I will explain the homework in my own words for better understanding so let's begin
What Is Price Forecasting?
Well prise forecasting is basically predicting the price of an asset coin or token for the future What the price will be you can do that by price forecasting
Price forecasting can be done for long term and for short term as well it means that you can predict a prize for a few hours and for a few month as well in price forecasting a trader look at all the the factors there are many e tools with which the traders predict the future price of a asset
Price prediction help us for our investment ine cryptocurrencies when we predict a prize we can do a better investment it in price prediction we look it the prize up and down and we use different tools and methods for that when a trader do a perfect price prediction he or she can make are really good amount of profit from the the investment
every trader knows how to do price forecasting because it is a very imported method no going into the market e without any price prediction and information can get you into huge losses so price prediction is is a very important and I would say unnecessary method that everyone should know if someone is getting into investments and trading
Discuss on why Price Forecasting is needed?
well I will give you a few reasons why price prediction or forecasting is really important for everyone
extra profit
Well you can make some extra profit by predicting price of a asset something we look at the overall market but you know how to predict price then you can make some extra profit then other people prize price forecasting will help you a lot in earning a good profit
less risk
well if you know how to protect price then your risk level also goes down because i up to some point you know the price of that specific acid that you have predicted the price of it is not always correct and on point but it can give you some relief from the risk and it can help you reduce the risk of losing all your profit and save your time as well
Time saving
when you know how to protect prize then it gets pretty easy for you to invest on a certain time and get out of that investment on a certain time so you don't waste your time waiting for price to go up and down because you already have some idea you can do more investment indifferent other assets while on the other hand if you don't use this you will be wasting your time waiting for the price to come down or go up so I think price prediction for forecasting is very helpful and it saves a lot of time
helps you choose the right asset
if you know how to protect a prize it will help you choose a right asset because there are many Assets and they are not going up and neither going down so so if you invested into those and you expect some profit then it will get really hard for you you may make some profit but not how much you have expected so when you know how to predict a prize it can help you choose a right it asset to invest in which can give you a maximum profit in a very short period of time
What Methods are best you feel for Price Prediction/Forecasting.
Alright it can be divided into three main categories with is the general thing but I will try to explain all of these three methods in my own way so that you can understand it better in simple words
Technical analysis
So technical analysis is all about all the historical statistics Trading volume price movement And many other past indicators Best watch in the price History records and some extra calculation By doing this you may be able to know Similar patterns And get some hints of when the price will go up and when can it go down this is the simple way of explaining this particular method I believe this is a very good method for price forecasting if you do it right and you do your research right
Fundamental analysis
so this method Approaches the price prediction from the another prospective Not from the Crypto price itself But from a macro view point and other External factors These are the things like demand and Use case for a project And some other things as well Such as the world economy and company revenue If there is anything any big event coming in the future And a blockchain project is involved in that and benefit from that event You will have to you look at that event closely
Sentimental analysis
This one is a little bit different from the Fundamental analysis and technical analysis This is human factor Not only the Crypto traders But everyone no matter who they are It can be a politician it can be a blog people on social media it can be reporter and it can even be a celebrity The more influential the more People are likely to affect the demand and price of cryptocurrency Recently Elon Musk is involved in many cryptocurrencies and that had a really big effect on the cryptocurrencies like if he tweeted something that will affect the cryptocurrency because he have got a really good influence similar to him there are many other big names so that comes under sentimental analysis
Take any Crypto Asset Chart graph and explain how to do Price Forecasting? OR Take any Crypto Assets Chart graph & as per its current price tell us what will be its future price for next 1 week or 1 month? You can predict for any direction up or down but explain it properly on what basis you have predicted the price.
Now I will give you a few example charts and I will try to explain as easy as it I can how to predict a prize and what is a good time to invest in a cryptocurrency using the technical analysis and reading the chart
ok first of all let me tell you that you can see two type of candles in the chart you will see this in every chat the green means that the market is going up and the red means that that market is going down now every trader has its own strategies when to buy I give you a simple example for this is when you see a chart like this as you can see here the market is going up and the coin is in uptrend we call it uptrend you can make a good amount of profit When you see a chart similar to this when the candles are going up and down but the graph is going up gradually it means that this is a really good time to invest in that specific coin because uptrend means that the point will go more up
example 1
now we will locate the other chat so in this chat you can see that the candles are are going down mostly I mean they are going up and down and the chart is going down it means that the market is in down Trend When you see a chart like this and when you look at the time frame my personal situation will be never to get and to that market don't invest in that market because the market is in downtrend it will go more down there you will have to see a certain point where you can invest but you'll have to let it go down and then on a certain point you will have to get into the market but never to buy when it's going down
example 2
source
In my opinion exact price prediction is very hard and no one can do that because there are many factors behind one asset but you can always see where the market is going through these two charge you can clearly see that when the market is going up and when the market is going down and you can take a specific chat for a specific time is well like one day 1 hour and even year also it will help you to know if the market is going up or down these are the two easy ways that I know for predicting forecasting price
Conclusion
personally this was my first time and I got to know about so many things and yes price prediction is a really important thing in investment and trading because without this you are going blankly in the market and this will give you a certain amount of idea about the market
I think everyone who is going to invest or start reading should know and have some idea about the three men methods of forecasting the price and with the combination of those three methods I think one can get a really good profit from the investment
Well I think we should more focus on sentimental analysis because in the last couple of months that has played a huge role in the price of cryptocurrency since many of the big names came and join the cryptocurrency I would like to give you an example of Tesla when they bought and invested their money in Bitcoin the Bitcoin price was up and since then it is quiet up and many other people joined the game also so I think if We combine sentimental analysis and technical analysis together we can make a really good amount of profit
@stream4u
thanks for the lecture
regards @azizulhassan
reason of re posting
no curation
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