Grassroot Crypto Education | Series 2 Volume 3 - Introduction to Technical Analysis by @david-o.

Hello Everyone.

_{Screenshot from and designed on canva.}

Introduction.

It takes time to know all about Cryptocurrency and bit by bit we are learning and growing, all thanks to our teacher @fredquantum thanks for this wonderful teaching on technical analysis. Every Cryptocurrency trader knows the importance of technical analysis and from the knowledge gained I present my assignment.

What is your understanding of Technical Analysis? Why is it Important?

Technical analysis simply refers to methods used by Cryptocurrency traders to analyze and detect trading opportunities. Technical analysis is usually carried out by putting together all trading activities which includes price movement of the asset in question, volume of the asset.

Technical analysis can be used to predict future prices of an asset. Through technical analysis we are able to know if the price of an asset is set to experience an Uptrend or a Downtrend.

Why is it Important?

No doubt technical analysis plays a vital role in trading Cryptocurrency, without proper technical analysis a trader might enter into a wrong trade and loose his or her capital.

• it helps detect resistance and support level.
• It helps traders to know when to enter and exit a trade.
• It helps traders avoid the risk of loosing their assets.
• Technical analysis helps in the identification of trends.

Explain Bull and Bear Markets in Cryptocurrency. What are Support and Resistance? (Also use https://www.tradingview.com/chart to give screenshots of the answers to this section)

The law of demand states that when demand of an asset is higher than supply the price of the asset increases and vice versa, this is where the market is classified into a bull market and a bear market.

Bull Market.
A bull market is experienced when buyers are in charge of the market, that is to say demand exceeds supply, once demand exceeds supply a bullish trend is observed showing that the bulls are in control of the market. An example of a bull market is seen in the screenshot below:

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Bear Market.
On the other hand a bear market is experienced when sellers are in charge of the market, this simply means that supply will exceed demand and once supply exceeds demands a bearish trend is observed showing that the bears are in control of the market. An example of a bull market is seen in the screenshot below:

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Support and Resistance.

Support and resistance level is that point which indicates a change in direction in which the market of a particular asset is trending.

Support.
An asset will continue to experience a downward movement until a support level is attained, once the support level is attained the market will start to trend in the opposite direction, therefore the market will now experience an Uptrend or an upward movement. Support level serves as perfect entry for buy trades.

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Resistance.
This is that point where the market stops experiencing an upward movement and starts moving in the opposite direction (downward movement). Resistance level serves as a perfect entry for sell trades.

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Conclusion.

In conclusion the support and resistance level serves as best entry points for buy and sell trades in the trading of Cryptocurrencies. Technical analysis plays a vital role in the buying and selling of Cryptocurrencies.

Thanks to our teacher @fredquantum for the impact laid. 15% payout to @steemkidss.