1) What are the different trends found in the market. Show example with screenshots attached. (Use tradingview.com for the charts)
Good day all, today i will be taking my first assignment on steemit Pakistan crypto academy program. First of all, we know that the market is where constant buying and selling occurs. It moves in actually three particular directions which are:
1.Uptrend
2.Downtrend
3.Ranging market
UPTREND
This is when we see market making clear higher highs and higher lows and then we can say the market is moving in an uptrend
In this chart, we see the market making clear higher highs and higher lows and moving up clearly, we see a good uptrend market here
DOWNTREND
This is when we see market-making clear lower highs and lower lows with us seeing a clear downward directional movement
In this chart above, we can see a clear downtrend with the market making clear lower highs and lower lows
RANGING MARKET
Here we are not seeing the market making either higher highs and higher lows or lower highs and lower lows but rather we only see the market moving in a straight horizontal plane.
In the ethusdt chart above, we can see a market without any clear direction neither making higher highs and higher lows or making lower highs and lower lows
2) Briefly explain when is the best time to buy an asset and when should you sell the asset so that you don't get in loss in a trending market (screenshots needed)
The best place to buy an already trending market is at the reaccumulation zone for uptrends cause these are the regions where we see price take a break or should I come them resting periods where whales pause their Action before pushing the market in the major trend. It's a good zone for taking entries.
We can see in the chart above, how at the re-accumulation zone marked at in purple, price was already trending, but at this re-accumulation we notice a pause in the movement in the market before price kept moving in the direction it was moving before
3)Show and explain the different phases of the Market on Crypto Asset except: BTC, ETH, ADA and BNB. (Screenshot needed)
There are 4 phases in the market and I will be using dotusdt chart to explain these phases but let me mention them first.The phases are:
1.Accumulation phase
2.Re-accumulation phase
3.Distribution phase
4.Re-distribution phase
ACCUMULATION
This is the phase where whales are buying up asset at low price trying to induce retail traders to also invest so as to push up price
Re-accumulation phase
This where the whales buy up more assets before price continues moving and at this time, we have seen more retail traders entering the market too
DISTRIBUTION PHASE
This is where we whales gradually sell off assets and before retail traders can find out, we can see a rampant drop in price after this phase leading to a downtrend in the market.
RE-DISTRIBUTION
This is where whales completely sell off their assets leading to a final drop in price price
4) demonstrate how will you use the phases of the market to your advantage. Where will you buy the asset and where will you take profits? (Screenshot needed)
In a market, one should try as much as possible to identify accumulation zones which are those zones where whales are buying up assets at a low price to induce more retail traders who would help push the value of price upwards making this a good place to place your buy but if we miss this entry, we can always wait to take our entries at re-accumulation zones where we see whales buying up more asset before we see price continue moving upwards again. When we are trading uptrends, we should watch to sell at accumulation zones, a zone where whales sell off their assets slowly before retail traders notice and then start selling off through, causing the market to start going down. So we should look to sell off at these zones.
Using the same chart from above, let me discuss the various market phases. First we start with an accumulation zone here in ethusdt which is the best place to buy and then we keep riding the market and getting to the re-accumulation phse, one can decide to buy more of the asset before another leg up in the trending market and when we get to the distribution phase, which is where the whales are sellingoff, we should also sell off our various asset here
CONCLUSION
Learning the phases in the market enabloes one to know when to enter and exit the market to avoid losses and also one should also avoid FOMO into market that is already trending but rather wait for either re-accumaltion zone for uptrend market and re-distribution for downtrend and also is good to apply proper risk management
CC, @huzaifanaveed1
Regards, @fabiha
Hello @fabiha, I’m glad you participated in the 1st Week of Steemit Pakistan Crypto Courses. Your grades in this task are as follows:
Recommendation / Feedback:
Good work fabiha. This is good understanding of the topic however you did not mention the uptrend phase in the 3rd question.
@huzaifanaveed1
Steemit Pakistan Crypto Courses
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