Crypto Academy Season 4 | Week 1: Trading with Strong, Weak and Gap Levels | for @allbert

Hi steemians, it's another season of the crypto academy. I am excited to be part of the last season and the new season 4 starting again.

Question 1

Graphically explain the difference between weak and strong levels. (Screenshot required). Explain what happens in the market for these differences to occur.

The difference between weak and strong levels.
Support and resistance levels in a chart are two basic things that one considers when you talk about levels. i.e support and resistance are important levels in crypto market.
What decides tthe strong level is the number of times that the market prices can beat off when it gets to this point. To breakout strong level, high volume of order (Buy or sell) is required.

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Weak level happens when amount of order about to be made is not sufficient to bring back the market to this level. This is also known as resistance and support levels. It's not reliable because the price can break out easily. Buying and selling orders are pending in this particular level. This level doesn't beat off easily therefore is detectable in the market.

coinmarketcap
What happened when weak and strong levels occurs is actually the volatile nature of the market.

Question 2.

Explain what a gap is. (Required screenshots) what happens in the market to it.

A gap simply means a rift or opening or breach or break that is created between two things. In crypto, we also have gaps which are formed between two candle sticks. This occurs when the candle moves high or low hence a space is created between them. Gaps is generated when there's a sudden big market movement resulting from an entry of great volume. Gap levels represent important supports or resistances to be considered in our operations.

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Question 3.

Explain the types of Gap (Screenshots required, it is not allowed to use the same images of the class)

We have four types of gaps which are;

1. Runaway gap

2. Breakaway gap

3. Common gap.

4. Exhaustion gap.

5. Runaway gap occurs when the price open higher than the former candle upward while the candle for downwards opens below hence a break is created.

coinmarketcap

1. Break away Gap happens when there's no transaction. i.e no any buying or selling activities going on.

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1. Common gap normally occurs when there is a difference between two candles.

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1. Exhaustion Gap is a type of gap that occurs at the tail end of business. It's as a result of last minute entry into the market that such gaps are created.

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Question 4

Through a Demo account, perform the (buy/sell) through Strong Supports and resistances. Explain the procedure (Required Screenshots).

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Question 5.

center> Through a Demo account, perform the (buy/sell) through Gaps levels. Explain the procedure (Required Screenshots)

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CONCLUSION

strong and weak levels also known as support and resistance level are two important levels in crypto market. Market volatility results to strong and weak levels.
Gap is created when there's influx of either buy or sell hence a gap will be created.

Best Regards
@charis20