I hereby present my answer to the homework task by @stream4u in the Steemit Crypto Academy which is all about Price Forecasting.

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What Is Price Forecasting?

The word price has to do with the value that is attached to a thing or things. In the world of cryptocurrency, it is the value of the assets at which one can buy or sale.

Forecasting is prediction. Though you may not be certain of the thing but based of certain parameters, one can say or predict an event that is yet to take place and in most case, it happens while in some cases, it may not. But in life, we usually need it in everything.

Price forecasting therefore, is the act of predicting the likelihood of either price increase or decrease in the cryptocurrency market and it must be based on certain parameters. The parameters could be historical, that is, the tend of that particular asset it the market. Forecasting can be done technically, fundamentally and sedimentary

Technical Analysis has to do with identifying market trend, price pattern, bullish or bearish and so on. When you are able to understand all these, it will be possible to predict what the price will be in the near future.

Fundamental price forecast on the other hand is usually based on the organization that owns the particular asset one is trying to predict, you look at their projects, their products, their pros and cons and how they follow it through. Their resources and so on. With these knowledge, it is possible to make an informed prediction and still get some level of accuracy.

Sedimentary forecast has to do with volatility of the market and what causes such volatility. They look at the speaches of those influencial people that are cable of suddenly changing the market price at the spur of the moment. You listen to news and any other action that can influence the market. Because the prediction is based on volatility, the decision will be immediate, it can go up, down, or remain neutral as if nothing happened. One need to be at alert in this case.

Discuss on why Price Forecasting is needed?

I have been able to discuss what price forecast is which is predicting the future price of an asset or market. The importance or the need for such prediction can never be over emphasized.

The reason is because, decisions can be taken that will better ones life. For instance, one can take advantage of short term movements and and make profits. If for instance, you are sure that the price will move up or down but it has not really started going as you predicted,you can sale or buy depending on the current situation and take advantage of the support and resistance levels.

Knowing the point of entry and exit can enable one to enter multiple trades and make more profit within the shortest possible time.

Forecasting helps to determine when the market will change, thereby reducing uncertainties. With forecasting, one can have good knowledge of the market and know whether to enter a trade or not.
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What Methods are best you feel for Price Prediction/Forecasting.

There are 3 methods that can be used for pice prediction. As mentioned earlier, they include technical Analysis or price action, fundamental price forecast and sedimentary price forecast.

The best method I feel is best for price prediction or forecast is Technical Analysis or price action. Technical analysis forecasts price movements bas d on historical data, especially price and volume. There are a lot of techniques that traders can leverage on. Techniques like
market trend, price movement, chart pattern, bearish-bullish trend, market support and so on. All this when carefully considered can give a trader an accurate prediction or near accurate prediction.

Even when choosing technical Analysis approach, the write one should be chosen. For instance, we have two ways of predicting with Technical Analysis. We have the top-down and the bottom-up approaches. The former is for short-term traders while the later is for long term traders. So if a trader examines the type of trader he is, it will be easier to make a near accurate prediction.

Technical Analysis approach is usually very objective because the tools are readily available to enable one assess the market quickly and accurately and then trade profitably.

Technical Analysis is not time consuming and not complicated unlike fundamental price forecast.

Technical Analysis does not require an expertise. It will s mostly used by almost all in the market.

Take any Crypto Asset Chart graph and explain how to do Price Forecasting?

This is EOS/TetherUS graph/chart

I from the graph above, I am looking at price from 2019 and beyond but before 2020. Before 2019, there is already a resistance at the price of 12.5000 and it went down to form a support level in 3019 at the price of 2.5000. And the price was pumped.

Assuming I come in in 2019 to see this graph at that point where it was already buying, I will wait until it retests back to the level it was in 2019 before I can take a trade or decide to buy. The reason is because, if I had just entered in that 2019 at that low without having patience, it will certainly come down, and as can see from the graph, the price later came down to that support level in 2019 . At that point, I will enter a buy.

From the graph, it was in 2020 that it came down to the level it was in 2019, which means I will have to wait for a complete 1 year before buying. It will be wise because as you can see, the prediction came through because the price never went beyond that 2019 support level but went up.

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CONCLUSION

From the foregoing, I have been able to discuss what price forecast is, the methods of price forecast, which of the method I prefer or would recommend. I have also used a cryptocurrency chart to show how price prediction is done. Thank you all for reading through. @stream4u my professor, please, here is my homework tasks.