Crypto Academy Season 3 Week 5 - Homework Post for Profesor @imagen on Market Patterns and Blockchain Projects.

Hello Steemians, its nice to be here again. I will be answering the homework tasks given by professor @imagen on the lesson Market Patterns and Blockchain Projects

Making an Investment into Litecoin

I have decided to make an investment of $12 in Litecoin using my Binance app using the following steps.

• Step 1, I opened my binance app and clicked on wallets, I have some funds in my USDT as shown below

-Step 2. I clicked on trades and clicked on the pair BTC/USDT to change it to LTC/USDT

• Step 3. afterward I clicked on market, the price of LTC was at $143 selected the amount of USDT I want to use in buying LTC which was 15, and then click on buy, waiting for my order to be filled. After a short while, my order was filled

The order details pop up with details of the trade

---

Why I Chose The Litecoin Asset

Litecoin is a blockchain digital currency that uses peer-to-peer technology to make payments around the world. It is a decentralized coin free from censorship and open to all. It shares many similarities with bitcoin as it was built using bitcoin core codes called the lite bitcoin by its founder, but it is faster and cheaper than bitcoin transactions.

The Litecoin blockchain is really secured and the supply of the litecoin is limited at 84 million of which 79% of it has already been mined and correctly priced at $143 as of this writing. Every block in the Blockchain of Litecoin is created every 2.5 minutes.

Litecoin Market Capitalization

Litecoin market capitalization is the price of Litecoin multiplied by the circulating value of Litecoin. From coinmarketcap the current price of Litecoin is $142.95 and the circulating supply of 66,752,414.52 LTC making the market capitalization of Litecoin to be $9,543,036,148 this is a drop from its market cap of 10.1 billion and price value of $153.88 from January of 2021

---

Litecoin Position in the Cryptoasset Rankings

Litecoin ranking among other crypto assets is ranked number 14th according to coinmarketcap as shown below/

---

Objective of the Project Behind Litecoin and Its Founder

The founder of Litecoin is Charlie Lee an MIT graduate and a former Google engineer and former Engineering Director at Coinbase who started Litecoin as a side fun project on the 7th of October 2011 intending to improve on Bitcoin's shortcomings, to be the silver to Bitcoin gold

Litecoin is a decentralized open-source network used to make payments just like bitcoin but aims to have a faster transaction time with a cheaper transaction fee and be more efficient for everyday use.
Litecoin uses Scrypt as a proof of work, and this was developed by Lee specifically to make large-scale, custom-built hardware attacks on the currency more difficult, unlike Bitcoin's SHA256 that was vulnerable to such attacks.

Roadmap of Litecoin

There is no specific road map to litecoin as it was built as a fun project to be bitcoin lite and hence follows in the blueprint of bitcoins. But updates and price predictions are in place
But its 2021 roadmap is stated to be the

• launching of the MWEB (MimbleWimble via Extension Blocks)
• the release of the litecoin core 2.0
• the taproot activation.

Evening Star Pattern

Source

The evening star is a candlestick technical analysis of price patterns that traders and investors of the crypto market use to notice a reversal in a price trend. An evening star indicates that a bearish run is about to occur usually after a bullish uptrend, It is the opposite of a morning star that indicates a bullish run is in sight.

An evening star consists of three candlesticks, the first candlestick shows a long green candlestick that indicates a rise in the bullish movement of the market, the second candlestick shows a smaller candle that forms a star and. the third candlestick is a long bearish candle that ends almost at half the first candle and indicates a major reversal in the uptrend and that traders are willing to sell-off.

An evening star is a useful tool that shows investors sentiment to sell in trading when doing technical analysis it helps shows 3 days of activity represented by 3 Japanese candles sticks, the first day is the continuation of an uptrend, the second day is a star as investors are indecisive as the buying and selling orders are close and this also serves as a reversal point in the uptrend, the third day is a clear sell-off as investors sell off creating a new downtrend.

What is Evening Star hit rate

According to research done by pattern the evening star had a hit rate of 70.1% on 4120 markets analyze.
Also according to Thomas Bulwoski who wrote a book on Encyclopedia of Candlestick Charts placed the evening star hit rate at 72% this is a testament to its accuracy

Abandoned Baby

Abandoned Baby

Abandoned baby candlestick pattern is a 3 candlestick reversal pattern in the technical analysis used by investors and traders to observe when a reversal in a trend is in sight, it can be a bullish reversal or a bearish reversal.

Abandoned baby patterns are very rare to see in the real world chart, so when it appears it is a startling sight. As stated earlier an abandoned baby can be a bear or bull it is a very reliable reversal pattern, very similar to the morning and evening star but with its body and wick not overlapping as the only difference.

To identify an abandoned baby it appears in a 3 candlestick pattern where the first candlestick is a large candle in the direction of an ongoing trend, the second candlestick is a Doji away from the previous and next candlestick hence the name abandoned baby and the third candlestick is another large candlestick in a different direction from the first candlestick and away from the Doji line.

Bullish Abandoned Baby

Bullish Abandoned Baby

A bullish abandoned baby candlestick pattern happens when a downtrend is at its end and indicates a reversal movement. This is made up of three candlesticks the first one is a large bearish candle following a downtrend (indicating a major sell-off by investors ) and the second candlestick is a Doji (indicating there is an equal sell and buy ) away from the previous candlestick and, the third candlestick is a large bullish candlestick (indicating a major buy-in as investors suspect a reversal in the trend).

Bearish Abandoned Baby

Bearish Abandoned Baby

A bearish abandoned baby candlestick pattern happens when an uptrend is at its end and indicates a reversal movement. This is made up of three candlesticks the first one is a large bullish candle following an uptrend (indicating a major buy-in by investors ) and the second candlestick is a Doji (indicating there is an equal sell and buy ) away from the previous candlestick and, the third candlestick is a large bearish candlestick (indicating a major sell-off as investors suspect a reversal in the trend).

Abandoned Baby percentage correct

The abandoned baby accuracy rate is given to be 81.4% by pattern wizard after research was done one 4120 markets. Thomas Bulkwoski a computer scientist and trader gives the accuracy rate of the abandoned baby to be 70% for bullish abandoned baby candlestick pattern and 69% for the bearish candlestick pattern

Perform analysis for 3 and 7 recent calendar days for Bitcoin Do you identify any patterns

In this section, the analysis will be carried out on Tradingview platform.

For the 3 day analysis using BTC/USD

There is the Dark cloud cover candlestick pattern which is a bearish reversal candlestick pattern where a bearish candlestick opens up and closes lower than the prior bullish candle. It is more effective if both candles are large. Thomas bulkwoski gives this pattern a 60% accuracy rate.

For the 7 day analysis using BTC/USD

Here is a bearish two black or red gapping continuation pattern that appeared after an uptrend, as shown above, this pattern predicts the trend will produce lower lows. It can be identified when a downward gap produces 2 lower lows.
Thomas bulkwoski gave it a 68% accuracy rate.

From the 3 days and 7 days analysis, we saw two candlestick patterns namely the Dark cloud cover and the Two black gapping the 2 analyses showed two different bearish candlesticks using 1-hour time frame in 3 days and 7 days charts respectively

Conclusion

There are numerous blockchain projects each with its unique aim at achieving a goal or solving a problem. Giving that blockchain technology is still considered a new technology more projects will still spring up with new and promising features all to the benefit of man.

Candlesticks patterns are essential in technical analysis for every investor or trader. It helps to give better insights and helps your decision-making with respect to the movement of any market in the trading world.