Steemit Crypto Academy | Course By @stream4u - All About Price Forecasting assignment submitted to @stream4u

INTRODUCTION

The uncertainties and volatility in cryptocurrencies has being a bit challenging to investors who desire to invest in cryptocurrency. It is not wisdom for an investor to engage in trading on cryptocurrency without knowing if the market conditions such as the price charts, capital to invest, the method of investment will favour him on the trade. For this reason every trader must have a trading strategy where he can make plans on how to make profit while he maneuver the some loss while trading.

One of the most important trading strategy while trading on cryptocurrency, whether Bitcoin, Etherum, etc, is Price Forecast.

WHAT IS PRICE FORECASTING

Globally, Price Forecasting is the process of predicting the future price of a particular commodity, stock or cryptocurrency.
It is the act of knowing what will be the outcome of the market price of goods or stock in the future.

In the crypto market, Price forecasting is the ability of an investor to predict the future price charts of a cryptocurrency (whether it will go up or down) before making his trade.
His prediction will decide if he will have a gain or loss in his transaction after he has closed the trade.

DISCUSS ON WHY PRICE FORECASTING IS NEEDED

In our global market, both buyers and sellers pay so much attention on the price of goods and services to know when the nature of the prices will favour them. The continually carry out market survey and experiments so as they can know when will be the best time for them to invest and make profit.

While trading on cryptocurrencies, every investor ought to be skilled in predicting the price of the cryptocurrency they are trading so as to make more gain than loss.
Due to the volatility and uncertainties involve while trading on cryptocurrency, it is expedient for the traders to have knowledge on the flunctuation in prices and also know the price movements, the price indicators and also charts patterns while trading.

Many negative outcomes such as loss can be avoided when the traders predict correctly on what may be the future market price of the stock they are investing in. This method can be of help both in the long term and also in the short term trade. Whether the price movement goes up or it comes down, the truth is that the trader happens to earn both ways as long as his price prediction or price forecast is correct.

Depending on the time limit the trader set his chart, it is possible that he can trade more than once as long as the price forecasting is correct.
Multiple trade is one of the advantage a cryptocurrency trader has while making price forecast before trading, because these will give him more profit more than a single trade.

WHAT METHODS ARE BEST YOU FEEL FOR PRICE PREDICTION/FORECASTING

In a cryptocurrency market where price charts or hints are given or shown to the trader before the starts trading, there is a possibility that there will be more of gain than loss in such trade. The only work the investor or trader ought to do is to observe, study and learn from the price movement or patterns which are set before making his trade. The knowledge and experience gotten while learning from the movement of the price charts will give the trader the advantage to predict the future price of the commodity or stock correctly.

Technical Analysis is proven to be the best method of predicting price in the crypto market. It serve as a beginners guide to new cryptocurrency traders, in the sense that you are given a demo account where price charts, indicators are drawn to you for you to make your prediction and as well make your trade.
When predictions are made correctly, you will make your earnings.

TAKE ANY CRYPTO ASSET CHART GRAPH AND EXPLAIN HOW TO DO PRICE FORECASTING

Am using a Demo Account to explain how to do price forecasting.

This is a Bitcoin chart on the 22 April. Let say that am checking the chart flow from 22 April to 29 April (weekly). From the chart you will see that the price is going up and this is the best time for you to sell. Let's see what will happen next.

Here the price went down from 1.204600 to 1.204535. this is the best time to buy and wait for the next time the market will go up again.

From this page, this is my earning details and from my Demo Account you will see that I earned nothing because I didn't predict correctly.
You can either buy or sell depending on how correct your price prediction is.