Please @steemcurator01 and @steemcurator02 this is a repost of my assignment that was not curated
What do you understand by a Trending market?
What is a bullish and a bearish trend? (screenshot required)
Explain the following trend identification and give an example of each of them. (Original screenshot needed from your chart). Do this for a bullish and a bearish trend.
i) Market Structure.
ii) Trendlines
Explain trend continuation and how to spot them using market structure and trendlines. (Screenshot needed). Do this for both bullish and bearish trends.
Pick up any crypto-asset chart and answer the following questions -
i) Is the market trending?
ii) What is the current market trend? (Use the chart to back up your answers).
Conclusion.
Introduction
Good day, our always smiling and happy prof, how do you see the image hope you like it, to be sincere if I was a girl I would have asked you out 😁😁. After going through the lecture, that you taught me, I then decided to answer your questions according to my understanding. Hope you enjoy it as you go through prof.
What do you understand by a Trending market?
As the name implies, trending means major, currently moving, reigning, active, hot, or popular at the particular moment or period in a Specific environment or field. So, therefore, the tending market means the current movement or direction in which the price and trading activities (buying and selling) of an assert move at a particular period.
The trend tends to move according to the demands of traders at the moment or particular period, this demand could result in either upward movement (uptrend) or downward movement (downtrend). It is usually in a trending market that traders tend to gain larger profit, whether the trader is Selling or buying, the assert in the market, as long as they are a corresponding trend that corresponds to the trader's trading activities, the trader will make large profit or gain.
For example, a trader who sells Steem, when the is a bullish signal on steem price movement, will make maximum profit and gain after successfully performing transactions.
What is a bullish and a bearish trend? (screenshot required)
Bullish trend
This is a type of trend that occurs when there is an increase in the price of an asset, as a result, causes an increase in the selling of assets at that moment in time, art this moment, the buyer is said to be in control of the market. This is said to be the best time to sell assets in the market to make a huge and better profit. Buyers are said to be in control because they determine the rate or amount of assets that would be sold at that particular period in time.
Bearish trend
This is a type of trend that occurs when there is a fall in the price of an assert, as a result, it causes an increase in buying of asserts at that moment time, at this moment the sellers are said to be in control of the market. This is said to be the best time to buy assets from the market to make huge and better profits. Sellers are said to be in control because they determine the rate or amount of assets that would be bought at that particular period in time.
Explain the following trend identification and give an example of each of them. (Original screenshot needed from your chart). Do this for a bullish and a bearish trend
i)Market Structure.
ii)Trendlines
Market Structure
The market structure of an asset can be easily defined in my understanding as to the structure of movement and directions of the price of assets assert at a specific moment. This movement can either be upward movement (bullish ) or downward (bearish). It can also be defined as the name implies as structural movement of an asset, at a particular period.
Market Structure shows how weak or firm the price of an asset is in the market and how their movement is affected by the operation of traders and investor's in the market, which helps traders understand and predict the characteristics or price of an asset in the market, at a particular period.
Trend line
The trend line is a technical tool used the monitor and check the movement of trends, that is it is a tool used to easily calculator and predict the movement or direction of price and activities of a market, in a particular period. It is used to know if the trend is valid or invalid. This tool is usually a line that acts as a breakpoint or limit point because when the trend touches the line the goes back to the fact initial position, this shows the trend is valid, otherwise it's invalid. This line can also be used to identify an entry or exit point for crypto traders, to help minimize the risk of losing assets or funds of traders in the market.
Explain trend continuation and how to spot them using market structure and trendlines. (Screenshot needed). Do this for both bullish and bearish trends.
Trend Continuation is the nonlinear movement that occurs in a chart, that is it is the reversals or bouncing back of trends, whether a bullish trend or bearish trends back to their initial price on a chart. This has been a source of large profit to traders because the trend returns to their desired value or amount. This also helps traders know the best time to enter or exit a market, so they can maximize their profit or gain while trading their assert. This will help them buy assets at a lower price when a bearish movement occurs and sell the assets at a larger price when a bearish movement occurs. That's to say that:
In a Bullish trend:
- The new high must move higher than the initial high.
- The new low must move higher than the initial low. While
In a Bearish trend:
- The new high must move lower than the initial high.
- The new low must move lower than the previous low.
The trend Continuation is valid, if the line is not broken, that is to say, for a trend Continuation to be valid it must bounce back to the initial position after encountering or touching a line.
Bullish trend line
Bearish trend line
Pick up any crypto-asset chart and answer the following questions.
Is the market trending?
I decided to choose Shiba Inu USDT pair. When we get the chart to the daily candle. On the 4th of November, before noon they were a bearish trend until it meet its resistance for hour's after which a Bullish trend began, and continued. So therefore I am left with no other options to say it's experiencing a bullish trend.
What is the current market trend? (Use the chart to back up your answers).
Before the 4th of November, the chart was experiencing a bullish trend, until around 12 - 1 is on the 4 the of November, the chart Stated experiencing a bearish signal for approximately 12 hours. At around 1 pm it meet its resistance for approximately 24 hours after which it started experiencing a bullish trend again till around 10 pm on the 5th of November, it started experiencing a bearish trend again, till around 11 am on the 6th of November, it was on a ranging or resistance phase for approximately an hour, then it experienced a bullish trend again.
Conclusion
Market Structure and trending market are awesome tools to help check and predict the price and movement, of the price of assets and trends of asserts, at a particular time. All thanks to prof for helping me advance my knowledge on trading and prediction of the price of assets, to maximize profits while making a trade or transaction in an exchange or crypto market.
I am also happy joining #club75
All images used above were all gotten from Binnace and Trading view
Cc
My mentor prof @reminiscence01