The Homework Task Steemit Crypto Academy Week 14 - Homework Post for @stream4u

TREND REVERSAL AND COINGECKO

TECHNICAL DETAILS ON TREND REVERSAL

The cryptocurrency market as we know us a very volatile one which has a lot of ups and downs, that is, bullish and bearish trend.

@stream4u

These trends are the things anyone needs to know about in other to know when to enter a particular market or when to exit the market. Every traders tries everything thing possible to avoid being caught in a reverse trend. What exactly is a reverse trend?

A reverse trend is a sudden change in the trend of a market either from bearish to bullish or from bullish to bearish trend. A reverse trend can be predicted from the nature of trend increase and decrease.

If you notice a change that is not consistent with the previous changes ( no matter how minute), watch out for a trend reversal , also, If the MACD line makes successive crossovers over the signal line , then there probably is a trend reversal on the way.

Whenever there is a long bullish or bearish trend, there will be a time when the trend breaks ; sometimes bellow the previous break point, when there is such change, then a trend reversal is imminently.So basically whenever a long trend breaks from the previous patter, even by a small degree, Then on watch out.

REVIEW OF COINGECKO

Coin gecko is an online publishing or information provider about the cryptocurrency market ; it covers everything, from periodical reports to NFTs , it gives information about a lot of coins and exchanges and it gives these information from an unbiased point of view.CoinGecko was set up in 2014 by TM Lee and Bobby Ong , to help give more insight into these usually dark or highly sensorsted (in some countries ) market .

Coingecko is a complete package
in itself .

HOW CAN COINGECKO BE USEFUL IN THE CRYTOCURRENCY MARKET?

Coin gecko seeks to make information such as the Coin price, volume, market capital, exchanges to trade coins (with the official website), record highs and lows, it also gives a report monthly or yearly, and gives traders access to books (not free) and a lot of other services like podcasts , newsletters ,etc.

Cryptocurrency trading is usually based on the past behavior of an asset and the coingecko can cover this information gap. Also with the coingecko, I know everything that may affect a token of my choice or not in reaL life ( fundamental analysis)

COINGECKO FEATURES

Coingecko is a platform with loads of features available to users in the cryptocurrency space.

Bellow are some of the features with appropriate screenshots .

1 Coins : Coingecko provides informatiom about a lot of coins , and gives a basic description of the coins and then gives an exchange that is best for the trading of the coin, 24 hours highs and lows , total supply, etc.

2 Exchanges : Coingecko gives a wide list of exchanges that one can use in the trading. One unique characteristic is that these coins atr arranged in ranks, that is, the better exchanges are listed first, that means trader needs not worry about the quality of the exchanges because coingecko has got them covered .It classifies these exchanges into spot, derivatives and decentralized exchange .

3 Publications : Coingecko has a lot of publications to help both beginners and pros to better their art of trading and analysis. Coingecko has some books, podcast, newsletter cryptocurrency report Blogs, and guides that helps users to get more insight into the assets.

4 Non- fungible tokens(NFTs) : The coingecko platform gives information about a whole lot of NFT coins .

DOGECOIN

This is a coin that was first created as a joke to mock cryptocurrency but so far, it has emerged to be real and serious coin. This coin is a ump and dump coin in the sense that its price Is easily manipulated .

The software engineer who created this coin sold his own dogecoins to buy a hunda Civic car ; meaning he had little or no hope that dogecoin will get the recognition it has gotten today.

WHY DO I WANT TO PREDICT DOGECOIN?

Dogecoin is a coin that has a bright future and this coin is being adopted very quickly. One thing that makes this coin even more popular and promising is the fact that billionaire Entrepreneur, Elon Musk, has a keen interest in this coin and so this coin has a potential to be the next gem in the cryptocurrency world.

The available supply of dogecoin is also reducing and so that means there is regulation going on and even though the coin experienced a bearish trend in the past couple of weeks, it is sure to be a great investment in the nearest future .

TECHNICAL ANALYSIS OF DOGECOIN

Technical analysis is the use of the market history of a particular asset to predict the future performance of that asset . In this case we are going to be analysing the performance of dogecoin for the next 1 week using the MACD indicator .

From the above chart and analysing the MACD line and the signal line, and checking the successive crossovers above the signal line, as it moves from a lower high to another high of greater value. Whenever this happens, it is most certainly followed by a bullish trend and going by the divergence of both EMA lines( MACD line and the signal line), it means there is going to be a trend reversal at some point in the week , that is, a bullish trend .

POSSIBLE LOW VALUE FOR THE NEXT WEEK

Considering the downward candle chart movement relative to previous downtrends, and from the histogram height(momentum) I think is going to be a trend reversal in the next week but that will be after a long bearish trend.

So I predict that sometime around Friday , this week, Dogecoin should have reached its lowest point which should be about $ 0.3