Hello steemit

How are you all? I hope everyone is fine and doing well. Today I got lecture of @stream4u in the second week of crypto academy to do his homework so lets start it by first mentioning the homework.

Make a Homework Task Post on the below Topics which you can also discuss according to your views on it, and try to explore it as much as possible but in simple terms.

NOTE: Information, Examples are should be related to the Crypto Market.

1.What Is Price Forecasting?
2.Discuss on why Price Forecasting is needed?
3.What Methods are best you feel for Price Prediction/Forecasting.
4.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.

1.What Is Price Forecasting?

Price forecasting is used to predict the crypto price in future, Price forecasting can be used to predict any currency price in future not only crypto’s price. It’s like a technique used by many people to predict before investing, It helps them to understand wether to invest for short term or it is suitable for long term. There are few types price forecasting which will be discussed in Question 3 of this homework and those types are Technical, Fundamental, and Sentimental.

Discuss on why Price Forecasting is needed?

Suppose you are a new investor in the market and you have zero knowledge of market trend and you invested in some asset and market of that asset crashes now instead of profit you will have to bear losses.
Price forecasting is needed to understand the market and that understanding lead us to invest on a proper currency at right time for profits. It is needed to understand the situation of the market and its future and a time in which we can invest in any crypto. Price forecasting is important for the person who is new to market and want to stay a longer in it with good profits and low losses without it, It will be like shooting an arrow in an open air and leave it on luck to hit the target.

What Methods are best you feel for Price Prediction/Forecasting.

Below are three methods which are considered best for price forecasting:

Technical Analysis:

We should understand it by its name “Technical Analysis” where user analyse the market through its previous and present indicators. After taking the technical indicators into consideration, we can determine the crypto price. In my view this is a good analysis because it is purely based on technical indicators of past and present through which we can predict the future of crypto for a good investment in the market.

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Fundamental Analysis.

This analysis is way different from the technical one because in this one, user doesn’t analyse the market but he analyses the factors which will support the asset in future and will be good for his investment and these factors include the publicity by some famous person like elon musk tweets for BTC in good image and in bad image which affect the price of BTC. Other factors include the balance sheet, cash flow statement and the income statement of the company which make users to invest in it.

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Sentimental Analysis

This analysis is based on the sentiments which is understandable from its name. As we know there are news which are true and there are news which are fake, now a user who heard the crypto news would not know wether it is true or not would get panic which will give a chance to a trader to take advantage of it. That advantage become profit and loss some times. Basically, simplifying it in eash words in this analysis, market analysis is based on news, blogs and any source of the information to the investors.

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4.Take any Crypto Asset Chart graph and explain how to do Price Forecasting?

The coin I chose for the crypto asset graph is ADA/USDT to explain the price forecasting. We can see the price graph of selected crypto acc to present time with continued variation, we can see the graph of pervious 1 hour,3 hour, 1 day graph, 1 week and 1 month.

This is the time graph of the selected crypto and it has continues variation with every passing second based on its price.

Above are the selected crypto graph for 1 day, week and month. Now looking at its price trend, where its going from past 1 month then week then day we will have the idea about the coming day price wether it will go up or down. We can make the prediction through price forecasting which is now possible through these graphs.

conclusion

I can say after getting the lecture and doing the home work that price forecasting is very important and it should be done through it types to get accurate predication. Without price forecasting it is impossible that you will hold for a long period of time in the crypto market because “not everyday is your luck day”.

That’s all from my homework. This post is plagiarism free and the pics used in this article have there source attached. I hope I have explained properly. Thank-you