Crypto Academy Week 4 Homework Post for (stream4u) / Support <----> Resistance / What is Technical Indicator? / Overview Of TradingView / 200 Moving Average

Hello Steemit Crypto Academy Community,

We approached towards the end of the week. I attended 4 courses (yohan2on, gbenga, besticofinder, sapwood) this week. I left the most difficult course for the last time. I have quite insufficient knowledge of technical analysis. But professor @stream4u is very good at this and I keep improving myself in technical analysis.

I read the professor's article, started my research, and now I'm preparing my homework.

P

Homework Task(Topic 1): What Is The Meaning Of Support Can Become Resistance & Resistance Become Support, When and Where set Buy trade, Chart Example?

Tradingview OMG/USDT chart

The support level indicates at what price we will buy the stock on the exchange. The support level sometimes breaks and this area now becomes a resistance zone. (Number 3)
Most of the time it happens the other way around. The level of resistance indicates at what price we will sell the stock on the stock exchange. Sometimes the resistance level breaks and that area has now turned into the support level. (Number 4)

The break of the support or resistance price level needs to be confirmed. If the price level falls below the support zone, it does not mean that the support price level is broken. Or, if the price level crosses the resistance zone, it does not mean that the resistance price level has been broken. Because the return can happen.

0MG / USDT chart on Tradingview. When OMG price breaks the resistance level ($ 5.13), this zone turns into a support level. It is always recommended to buy stocks at the support level. After buying I think there should be a stop loss 5-8% below the support price level.

Homework Task(Topic 2): What Is A Technical Indicator? (You can explore it as much as you can, like explain its role, show anyone technical indicator from your chart and name of that Indicator.?)

They are mathematical models that give us an idea about the direction of the price or the continuation of the trend in any stock chart.

It reveals market information more clearly.
It provides confirmation of the market's horizontal or trend going.
It provides information about the excessive increase or decrease of the price of a share.

There are many indicators that are known and applied by traders. However, the important thing here is not to know all of them. It is enough for us to know 4-5 indicators that we get better efficiency and whose usage we know well. Knowing all of them is actually often confusing.

Now I want to inform you about any indicator.

MACD (Moving Average Convergence Divergence)

To put it briefly, the MACD indicator is found by subtracting the price's 26-day moving average from its 12-day moving average. A 9-day moving average is plotted on top of our MACD chart as a signal chart.

Tradingview LINK/USDT

In the chart above, the blue line is the MACD line and the orange line is the signal line. The middle line is a histogram. When the MACD goes up or down and crosses the signal line, we can predict a change in price in that direction. For example, where I show it with (1) in the graph, we see that the MACD line goes up by cutting the signal line shown in orange. As you can see in the picture, an increase in price has been observed. Where I show it in (2) on the graph, we see that the MACD line cuts down the signal line shown in orange. This gives us a hint that the price will drop soon.

The dashed line (histogram) that divides the graph in half can also be thought of as a support line. The fact that our MACD and signal lines are above the zero point (histogram) indicates that the average in the short run is higher than the long term and the price is in an upward trend.

The fact that our MACD and signal lines are below the zero point (histogram) indicates that the average in the short run is lower than the long run and the price is in a downward trend.

However, there is something very important to be forgotten. We never need to trade using the MACD indicator alone. We need to look at a few indicators that we know the usage well. Then we have to make our commercial move.

Homework Task(Topic 3): Provide your view and explore TradingView.

Tradingview should be one of the tools that a good trader often uses. You have a limited chance to use Tradingview for free. However, if your financial situation is good, I recommend you to switch to paid membership. With a paid membership, you have the opportunity to use all the features of tradingview. You cannot use many features for free use. For example, you can use only 3 indicators.

We can access the site via the address https://www.tradingview.com/. Also, most exchanges allow you to access tradingview on their website. After signing up to Tradingview for a fee / free of charge, we can log in from the "sign in" section above.

If you click on the "Chart" tab at the top right, it will show you the chart of any stock.

Where I show you with (a), there are tools that allow you to draw graphics, shapes, and write. With these tools, you can draw graphics professionally.

Where I show it in (b), the graph in the middle shows which stock it belongs to. If you click there, the search bar appears. You can also access the charts of other stocks through the search bar.

The place I showed with (c) is a very comprehensive place. You can access various time charts of the stock. You can make your indicator choices. You can create an alarm. Undo / forward keys. Save the chart. Take pictures of the chart.

There is also a plugin on the right that is not visible in my picture. It shows us the instant values of the stocks on your watch list.

I think tradingview is not the place to learn by reading. With practice, you can explore tradingview better.

Homework Task(Topic 4): What is 200 Moving Average, how and when we can trade/invest with the help of 200 Moving Average? Show different price reactions towards 200 Moving Average

Moving averages are considered as an important indicator in terms of trend tracking. It helps us to identify support and resistance points. There are many types of moving averages. One of these is the 200-day moving average. It is a line showing the closing price of the last 200 days. It is frequently used by investors. It is carefully monitored in determining an important signal and support-resistance levels. Moving averages of more than one time frame are considered to have a more effective view on the direction of the market.

200-day ETH / USDT chart on Tradingview. It shows the average closing price of ETH / USDT for the last 200 days.

Tradingview IOTA / USDT charts.

Where I show it with (a), the IOTA price comes from below towards the 200 moving average and surpasses the 200 moving average price in the opposite direction. As you can see on the chart, the IOTA price saw a big rise that day.

Where I show it in (b), the IOTA price is moving from above towards the 200 moving average and in the opposite direction exceeding the 200 moving average price. As you can see on the chart, the IOTA price saw a big drop that day.

The 200-day moving average will often give us a good clue. In fact, the fuss with the 50-day moving average and if the trend is upward, it will indicate that there is a great opportunity, the "golden cross". It will also allow us to avoid "death cross" if the trend is in the opposite direction. It will help us find the safe capital, as professor @stream4u said.

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