Starting Crypto Trading - Crypto Academy / S6W1 - Homework post for pelon53.

Hello, everyone!
Welcome back!
It is a previlage to be part of this long awaited season 6 on Steemit's Cryptoacademy. I hope for the duration of this season everyone will learn more, have fun and create more quality contents.
What do you need to know before venturing into cryptotrading?
A brief expository to this question's answer is highlighted in professor Pelon53 article titled 'STARTING CRYPTO TRADING'.
With respect to the homework provided in the above lecture article, I will be sharing my perspective on some basic concepts anyone must understand before starting a career in crypto trading.

In your own words, what is fundamental analysis? Do you think it is important for a trader? Justify the answer.
What is fundamental analysis?
Fundamental analysis as the name implies, is a type of analysis which consider the basic study of financial events and natural factors that has direct impact on the market price of a commodity be it securities, fiat currency or cryptographic assets.

Historically, Benjamin Graham and David Dodd, were the first people to introduce the concept of fundamental analysis to the world of trading in 1934.
Since then fundamental analysis has evolved to the point that it is now referred to as macroeconomics analysis.
Can fundamental analysis be calculated?
When carrying out a Fundamental analysis there are both quantifiable and non-quantifiable factors which are considered.
A mathematical model could be created for the quantifiable factors such as taxation rates, GDP, interest rates, inflation and others for off-chain assets . Other quantifiable factors for on-chain cryptographic assets include Market Cap., network hash rate, number of addresses and many other financial indicators.
However, non-quantifiable factors in fundamental analysis include, Government policies, political and social events. These non-quantifiable factors affect both off-chain and on-chain assets in the same way.
Why is Fundamental analysis important for traders?
Fundamental analysis is vital to every trader when making trade decisions because it helps the trader predict the future price action by analyzing factors that control the psychology of the market.
Although , fundamental analysis might be tedious , time consuming and not consider certain factors like investors and traders but the principles of fundamental analysis is governed by basic laws of economics including laws of demand and supply.
In essence, any trader that has a fair knowledge of maker influencing factors and has access to current news can carry out fundamental analysis.
For example, a political policy of making bitcoin a legal tender in El Salvador was announced by President Nayib Bukele on June 5. Since, Fundamental analysis factors in political event, a trader implementing fundamental analysis would easily predict a bullish trend.
From June 5, 2021,till the implementation of this government policy on Sept. 7, 2021, bitcoin entered a bullish trend. The screenshot below shows this .

Explain what you understand by technical analysis and show the differences with fundamental analysis.

What is technical analysis?
Technical analysis in trading is the study of the historical data of a asset in order to predict the future behavior of the same asset in the market.
Price in crypto trading can be volatile,although from time to time similar market structures are formed and the outcome of this structure is usually the same.
In the above scenerio technical analysis become very useful as price action could easily be predicted and the risk of a trade managed.
Can Technical analysis be calculated?
While performing technical analysis traders make use of technical indicators, chart patterns , price action and market structure to predict the future movement of price and changes in trends.
Mathematical models are the basis of technical indicators while chart patterns and market structure are studied using geometry.
There are some tools used in technical analysis which do not need mathematical models or geometry but are relevant in in whatever pattern of trading you practice including scalping, day trading, swing trading and positional trading. One of these tools is the use of lines to identify support and resistance levels. The line tool is one of the most simple but yet most effective tool.
How is technical analysis different from Fundamental analysis?
Technical analysis unlike fundamental analysis is strictly base on the study of historical data to predict future market outcomes.
In addition, technical analysis unlike Fundamental analysis also takes into account the influence of traders and investors on the market. The previous effect of traders and investors input on the market are analyzed by special technical indicator and then it becomes a reference point which advises current trade decisions.
Unlike Fundamental analysis , technical analysos might not always be correct. Situations may arise where whales can affect the crypto market and the outcome may then greatly differ from historical data..

In a demo account, execute a sell order in the cryptocurrency market, placing the support and resistance lines in time frames of 1 hour and 30 minutes. Screenshots are required.

Executing a sell order in 1 hour time frame with support and resistance levels shown.

Executing a sell order in 30 mins time frame with support and resistance levels shown.

In a demo account, execute a buy order in the cryptocurrency market, placing the support and resistance lines in time frames of 1 day and 4 hours.

Executing a buy order in a 1 day time frame with support and resistance levels shown.

Executing a buy order in a 4 hours time frame with support and resistance levels shown.

Explain the “Hanging Man” and “Leaking Star” candlestick patterns. Show both candlestick patterns on a cryptocurrency market chart. Screenshot is required.

Conclusion