Steemit cryptoacademy homework task for @stream4u | Reverse strategy and Coingecko

Hey steemians
In this post I will be submitting homework for @stream4u .

Technical Details On Reverse Strategy

Reverse Strategy

• It is a strategy used to make profit when a cryptocurrency or market moving in bearish and bullish pattern, so by looking at chart(previous low , previous high, bearish and bullish movements)of a cryptocurrency for previous day , you can make your entry and exit points for the next day and make profit.

• People use different types of indicator to predict the price of a cryptocurrency, but when the market or cryptocurrency is going under a long bullish and bearish movements , those indicators may fail due to the high volume and then cost you a loss.

• You must know how to use Reverse Strategy , let us suppose a market or cryptocurrency is going down continuously making bearish zone , a favourable condition to buy , but what if it goes more down or bearish movement continues , so to tackle that we should know how to use Reverse Strategy.

How to tackle trading in longer bearish and bullish movements

• Firstly , you should avoid trading when the market or cryptocurrency is showing a longer bearish and bullish zone , you wait for the day to end and be ready to note some important points from that day , you look at the chart and prepare for the trade for the next day by looking at the chart or bearish and bullish movements in the last 15 or 30 minutes from the cycle of 24 hour of the day when market shows long movements of bullish and bearish zone.

Preparing for and working on Reverse Strategy

• We can understand that easily by taking an example .
  So let us take an example where the market or a cryptocurrency went under a long bearish movement, long bearish movement refers to the low price or more sellers , so previously I talked about you look for the chart before 15 minutes of the end of the day, at the end of the day sellers exits and buyers join which gives a little bounce in the price of that asset or any cryptocurrency, so this is the time for you to note the Closing price , Previous day low point , Previous day high point , Opening price , Your predicted entry point , Your predicted exit point .

• Now you wait for the opening price of next day , if the opening price of that day is near to the closing price of previous day , you can buy at this point because the previous day market or cryptocurrency was showing a longer bearish movement, so you make that point for entry point and buy immediately and then you wait.

• Now you wait for the market or cryptocurrency to show bullish movements of price to go high , which will happen when the sellers will enter the market next day again , so you wait for the bullish movement and make the previous day highest point as your exit point , if market or cryptocurrency doesn't show any bullish movements you must set a stoploss to make sure you don't suffer any loss , stoploss must be set at the lowest point of the previous day .

• If your strategy works and the market or cryptocurrency started showing bullish movements then you wait for it to reach the highest point of the previous day , and make it your exit point , if you have patience and want to see what happens next you can wait and see if market or cryptocurrency continue to show bullish movements or going upwards then you have an open target ,open target means it is open to you , you can exit everywhere at any point .

• If you get a value that you think is going to be the maximum for the day you can exit at that point ,this point can be anywhere , at the previous day's highest point or above the previous day's highest point , all depends on sellers.

• So you exit the market and you can see that you entered when the market was showing bearish movements or low price and exit the market when market was showing bullish movements or high price .

• That's how you use Reverse Strategy to make profit by watching bearish and bullish movements in a chart.

So, I have told everything about reverse strategy .

Example of reverse strategy :

• Here in the first example you can see the that longer bearish and bullish movement, ao we can apply reverse strategy here . In this example , the market or cryptocurrency was showing bearish movement and then a tend in upward direction start making bullish movements pattern , the market keeps increasing and then after reaching a point bullish movements stopped and reversed into bearish movements.

• It is important to place your stop loss at the previous low point so that you don't suffer any loss.

• Here you can also see that the dip candle is longer than the new candle , and the closing price for that will be close to the opning price of next candle.

• In this example you can also see bearish movements which then reversed and changed into bullish movements , in the second reversal I set my entry point at the bearish movements and then waited for the trend to reverse , and the trend reversed into bullish movements so I made my target point at the previous high but I have patience and wait to see where the market will go , now the bullish movements continues and now I have open target and I can exit at any point with profit.

Hope you understand from these examples.

Review of COINGECKO

Q1. What Is A COINGECKO?

• It is an important website for someone who is holding cryptocurrency as you can see the details of about 7288 coins , 470 exchanges, Market capitalization , 24 hour volume and dominance of cryptocurrency.

• Basically if your are a cryptocurrency collector then COINGECKO can provide you all the details about the cryptocurrency you are holding

• It provides you the market cap, 24 hr trading volume, 24h low/24h high, circulating supply and price chart of a cryptocurrency that you want to know about.

• Now with all these information you can get all - the basics and technicality of the market.

Creation of Coingecko

• COINGECKO was developed by TM Lee and Bobby ong in 2014

Q2.How COINGECKO Can Be Helpful for you in a Crypto Market?

• COINGECKO can be helpful for me in a crypto market in several ways :

(1) You can check the details of change in the price of cryptocurrency in 1 hour, 24 hour and 7 days , so with the help of this information and the price chart of that cryptocurrency one can use technical analysis to predict the price of that particular cryptocurrency and make profit.

(2) You can see there are 470 exchanges in the COINGECKO and with the trust score , so by using COINGECKO, one can safe oneself from being cheated or involved in a fraud with the fake exchanges going on various websites or at many platforms like telegram.

(3) There is a developer option in COINGECKO which tells us about the growth or commits by a cryptocurrency or coins , so that one can invest in a developing or growing project and make money in future from that.

(4) COINGECKO gives you option to choose your native currency to save your time converting data from USD(default) to your native currency.

(5) COINGECKO provides contract address of a particular asset that you want , and ensure that you don't use wrong contract address to prevent us from scam.

(6) There is an option of ETH gas which tells about how busy the Ethereum network is , then a person can easily know the perfect time to buy or when the prices are low with the help of ETH gas.

(7) There is a news section of COINGECKO where you can get all the updates about the cryptocurrency.

(8) And you can learn about trading with Defi(decentralized finance) in the COINGECKO learn section.

Q3.Explore COINGECKO features with information.

• Now I'm going to explore COINGECKO features , to explore COINGECKO , I go to
  https://www.coingecko.com/en .

(1) Homepage of COINGECKO

Homepage of coingecko

• Here at the homepage you can see the top 100 coins on the basis of market capitalization with their price, price fluctuation in 1hr, 24hr and 7 days , market cap and price of the coins.

• And you can also see the thousands of coins , hundreds of exchanges, global market capitalization , 24h volume, dominance and ETH gas.

(2) Exchange section of coingecko

Exchanges

• Here you can see all the exchanges ,by going on the exchanges section above at the menu bar , you can also see trust score of the exchange so that you don't fall in any trap of scammers.

(3) Currencies at coingecko

Currencies

• By going on the currency section you can change the currency which is set to USD by default in your native currency , like I changed it in INR, it ease your process as you don't have to convert USD through calculator or converter .

(4) Filter section of coingecko

Filter

• By clicking on filter you can filter the currency on the basis of hashing algorithm , platforms and all categories. It makes easy to access the cryptocurrency just by filtering them on the basis of hashing algorithm and platforms.

All hashing algorithms

-You can click on any hashing algorithm on which a cryptocurrency works you will get it.

All platforms

• Here you can search cryptocurrency by platforms .

All categories

• By clicking on a category you can go to the cryptocurrency it belong to.

(5) Categories

Categories

• On the basis of category of coin you cand find the top coins of that category to invest in.
  Those category includes
  Exchange based token , DeFi, DEX(decentralized exchange) , you can choose any one and can see the top coins and details about them.

(6) Recently added coins

Recently added coins

• Here you can see the list of recently added coins and their price , market cap and volume.
  Mostly websites took time to add new coins so you can check recently added coins on coingecko by going on recently added coins section and aee details about them to invest in them.

(7) Developer

Developer

• By going to developer section you can see the development of recently added coins and invest accordingly . It is a good parameter to judge a cryptocurrency , by judging cryptocurrency on commits made by them is beneficial for investors to see before investing.

(8) Publications and resources

Publication and resources

• by clicking on 3 dots on the left side of tye homepage you can see the option of publication and resources where you can read books , blogs, guides , news and learn defi and many other things.

(9) DeFi

DeFi

• Here you can see about DeFi coins and decentralized exchange and details about it. Decentralized finance is a very important finance technique for someone who is holding any cryptocurrency , so by coingecko you can learn DeFi.

(10) NFT(Non Fungible Token)

NFT

• Here in this section you can see top 100 NFT coins and NFT spotlights to invest in. NFTs are non fungible token means that they are unique so investor must know about them before investing , for that coingecko has an option NFt where you can see top NFT coins and NFT in spotlight .

So I have answered all the questions asked briefly .

1. Weekly Price Forcast For Crypto Coin: Bitcoin

• Here in this picture above you can see the price chart of Bitcoin , resistance line is at $65k and support line is at $45k , and now the price is at support price , and I have highlighted the long bullish and bearish zone which can affect the price , and I have used MACD as an indicator which tells about the change in trend.

• So above in this example , there is a MACD crossover which leads to the change in trend and can be the time for enter the market or exit the market as it tells that the trend is going to change , so the price is at now at the support price of $45k , so my prediction for the next week is that it will bounce back from the support line and gain some value for whole next week.

• Here in this example you can see that I have joined the top and low of bullish trends and there is a point that doesn't follow the movement of bearish and bullish pattern and breakout to the lower point causing a change in the trend , and you can see that the lines of MACD is crossing or crossover each other at that time means that the trend is going to reverse , so same can happen here , may be it can breakout the support line and fell down to $40k in next week.

2.Why Bitcoin?

• I choose bitcoin for the following reasons:

(1) Due to its popularity and dominance , or you can say number one coin on the basis of market capitalization .

(2) It is decentralized cryptocurrency run on some set of rules , leading to transparency , so it made a perfect coin for me to choose as it is not controlled by anyone , all the users have control over their actions.

(3) Due to its volatility and high volume , it is not easy to predict the movement in price of bitcoin , I said predict, you can't go by prediction every time , there is a difference between prediction and purity , you should never go by your instinct , invest when you are sure.

(4) It is a very high risk asset , as you can lose $5k in just the matter of half an hour , but if you predicted right you can make a profit of thousands of dollar s.

(5) Bitcoin can be converted to native currency easily and some places are accepting bitcoin as currency .

So my main motive of choosing bitcoin was to show that how volatile it is , if you don't calculate your moves and don't predict the price of bitcoin properly you can suffer a huge loss , like recently a teacher lost 9 lakhs due to fall in price of bitcoin after just a tweet of Elon musk regarding Tesla and bitcoin .

Hope you understand.

3. Complete detail on it's one of the analyses of Technical/Fundamental/Sentimental with price details.

• I'm using technical analysis which I learnt from @stream4u professor in one of his lectures.

• So to predict the price I used technical analysis , in technical analysis you read the chart and price movements of a cryptocurrency and then predict the price , I have done the same , I mark the resistance and support line which shows the highest and lowest price , price is supposed to bounce back from these lines as these lines are there to restrict the price from going up or supporting the price from going down.

• I have also used MACD(moving average convergence divergence ) , which tells us about the change in trend when it's moving averages meets or crossover each other .

• So as you can see I have used all these strategy of technical analysis to predict the price , I told that the price has reached the support line , so it is possible that it will bounce back from that point and gain some value lest it does not go further down breaking support line as it did earlier.

• So I have told all the strategy I used to predict the price under technical analysis .

4.Based on which Technical/Fundamental/Sentimental study the possible low level and the high level for the next 1 week?

• As I told above I have used technical analysis to predict the price

• Possible low level for the next one week : $40k

• Possible high level for the next one week : $48k

Conclusion

• I have studied reversal strategy and its implementation and got to know about COINGECKO website and it's features and uses.

• I have price forecast for a week for bitcoin with technical analysis , I tell about why bitcoin, probable high and low price next week .

Thank you
For the attention of @stream4u