STEEMIT PAKISTAN CRYPTO COURSES SEASON 1 | CRYPTO MARKET: TRENDS AND PHASES INVOLVED IN IT

Greetings my Proficient students. This is @huzaifanaveed1 at your service. I'll be one of the professors of the Steemit Pakistan Crypto Courses Season 1. I welcome all of you in this amazing Initiative and will be with all my students all the time providing every help you need.

In my first lecture as a professor I have decided to teach you all about the Crypto Market: Trends and the phases involved in it. Before trading in any market it is very important to recognise that in which phase is the market in. This will help you in your trading as well as entry and exit strategies.

So without any further ado lets start with our first course:

If you have ever seen a market, you must have seen that sometimes it is moving in an upward direction and is green in color and sometimes it is moving downward and is in red color.
We should know when entering in the market there are two types of market.

Trending Market
Ranging Market

TRENDING MARKET

In trending market the price is moving in a particular direction, it could be an upward movement or a downward movement.

Bullish Market

Bullish market is a term used when the Market is in an upward trend movement. This means that the Buyer's are in strong position in the market

Bearish Market

Bearish market is a term used then the market is in a downward trend movement. This means that the sellers are in strong position in the market

RANGING MARKET

Ranging market refers to a market in which there is no particular trend rather the market is constantly creating a range of highs and lows.

PHASES IN THE MARKET

Before talking about the phases in the market it is very important to know how are these phases created. There is a term used in Trading which is known as the WHALE

Lets understand what Whales are

WHALES

Any individual, or a group of individuals or any particular company who hold a large amount of any particular crypto currencies are regarded as whales

They 'control' the market as they have enough influence and power that their one move could change the market trend and give rise to volatility in the market.

When any organization or if many traders start investing in a crypto asset the price of that asset will rise as more and more liquidity is being provided in the market. This results in a bullish trend and when the assets are being withdrawn from the market the trend will change into the bearish trend significantly as the money is being extracted out of the market.

Whales affect small imvestors alot. The whales in the market usually stock up on a certain Cryptocurrency by investing in huge amount of capital. This sends a spike in the prices of that coin. The whales, then carry out with immense buy orders in the market at much higher prices compared to the prices in the market. Due to this act the traders in that market are bound to raise the prices of their bids as well. This is known as Market Manipulation

Due to whales we see different phases in the market. There are four major phases in a market. Lets discuss them in detail

Source

ACCUMULATION PHASE

This is the first phase in which the whales will gather the assets. They will buy and sell in not so high and low prices which will tempt traders to invest in the asset. The accumulation phase is usually seen as small ranging market.

UPTREND PHASE

This is the second phase in the market. This is where the whales get into the real work. They will buy the asset in huge amounts which will significantly increase the price of the asset. Whales play this strategy to attract traders by an uptrend direction. The traders will see that the price of the market is on a rise and they will invest in their money in the market. There will be a constant rise of the market in this phase.

DISTRIBUTION PHASE

This will be a sideways market after a successful uptrend. During this phase the whales will start taking profits of their investment and will start selling the assets slowly. During this phase investors make the mistake of buying more asset as they think the market will rise from this point as well. Little do they know that the Distribution phase is followed by a Downtrend phase.

DOWNTREND PHASE

This phase occurs very quickly. The investors start selling thier assets.This is where the whale will force the market towards a bearish trend. The price will be lowered which will leave the investors in a position where they will try to exit the market without having losses. All the investors will sell their owned assets which will increase the supply and we will see a huge downward movement, a bear market.

After knowing the different phases of the Market it is very important to know how to tackle these situations created by the whales and how to take profits in these phases.

Do not let your fear overcome you

The term FOMO is used in the market alot which means the fear of missing out. This means when a trader sees an uptrend he starts thinking he should invest in this market because if he doesn't he will miss out opportunity of making profits. This is a very stupid step. Do not be one of those traders. Observe the market first, take notes of the phases the market has been through and the current phase the market is in. If you don't patiently analyze the market you'll be at loss.

Risk Management

A very important step. You should only invest money which you can bear to lose. Do not invest all of your savings in any market. Invest little amounts.

CONCLUSION

It is very important to know about the trend of the market so that you could have good entry and exit strategies. You should keep the whales in mind as they basically create the different phases in the market.

Keep this in mind that you cannot win against a whale as you do not have the money and the power to do so.

There are different phases in the market and we should know when to invest and when to exit the market with profits. If you do not have a good analysis of the market then you will loose your money.

Homework Questions

1) What are the different trends found in the market. Show example with screenshots attached. (Use tradingview.com for the charts)

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)

3)Show and explain the different phases of the Market on Crypto Asset except: BTC, ETH, ADA and BNB. (Screenshot needed)

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)

5) Conclusion

Homework Rules and Guidelines

Homework should be posted in the Steemit Pakistan Community

NO Plagiarism.If you're found copying work you will NOT be rewarded any marks.

The assignment Post should be a Minimum of 300 words

use clear watermark on the screenshots you use.

use only copyright- free images and attach source link with the images.

use the tag #huzaifanaveed1-psp #cryptosp #pakistan #steemexclusive in your first four tags.
comment your assignment post link in the comment section.