Crypto Academy / Season 3 / Week 5 - Homework Post for Professor @imagen

This is Season 3 Week 5 of Steemit Crypto Academy and I'm writing Homework Task for Professor @imagen

1)

Make an investment. Show screenshots of the process. Why did you choose this cryptocurrency? What is it Market Capitalization? What is it position in the cryptoasset rankings? What is the objective of the project behind this coin? Who founded this coin? Show the roadmap. What is the specific purpose of the cryptocurrency?
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I will answer this question step by step. First of all I will do an investment from my registered Binance account.

For this I open my Binance account and go on wallets. I selected the spot market and searched VET to buy with USDT.

• Below is the screenshot of my verified account
• My Investment in VET
• Order details with current date mentioned.

Why I chose VET?

There are a number of reasons why I chose VET. The Most obvious of them are:

• I have already worked with it before and I have studied the market trends and its general behavior
• It is a well-known cryptocurrency
• It is a very viable cryptocurrency for investments as it is powered by a blockchain-based platform i.e Vechain. The blockchain is capable of handling a large number of transactions and provides a user-friendly experience.
• You have the option of storing tokens both on the native and third part wallets. The native wallet i.e VechainThor is also very efficient and easy to work with. The best part of it that is not available with many wallets is that it is available for both desktop and cell phones.
• VET is supported by a large number of brands such as Mcdonlads and Walmart, BMW, and Renault.
• The project has some real goals such as using blockchain technology as a service (BAAS). Through this it is focused on mass adoption of blockchain technology on a broader scale. 
• The team behind the project is a blend of tech experts and businessmen so that you can trust the ideology and functioning and rest assured of the strong foundation.
• A large number of US billionaires have their confidence aligned with the project; one such name is Jim Breyer, Founder and C.E.O. of Breyer Capital.

Market capitalization and overall ranking among other cryptocurrencies

• The market cap of the VET on coinmarketcap.com is: $5,304,750,506
• The fully diluted market cap is: $7,151,148,967
• The ranking of VET on coinmarketcap.com is: 23rd in the list from top
• Current Price of VET is $0.0826

The founder of the Vechain

Have you heard of the famous brand Louis Vuitton? The founder of Vechain is the ex-chief information officer of the this brand. His name is Sunny Lu. He gained much experience working as an information officer there and that equipped him with all the skills to develop a cryptocurrency name Vechain that has wide usecases. He designed his team using his business expertise. 

The roadmap of Vechain

When you open vechain’s website you see that they have more potentially focused on sharing solutions to various economic issues and how vechain is playing a significant role in them but what is a bit disappointing is that the website does not clearly mention a roadmap and extracting it was quite difficult. 

I am sharing the one I found

From this it is clear that after the launch of the Vechain wallet the initial steps taken on the platform managing the investments and providing a better governance platform to the community members. They developed a veVote system in November 2019. 

And adjusted the stakeholders' rights in different categories. The next step was to make the platform more user-friendly and increase its applications with dApps and increasing the access on a number of browsers.

The platform addressed the issue of supply chains of large business groups by introducing the blockchain technology that works in association with the internet of things to equally distribute the power of governance. 

Objective of the project behind the coin and the purpose of  the cryptocurrency

The main objective behind the creation of Vechain was to address the most common issues of supply chain and providing quality services to the users. The aim was to improve supply and product lifecycle management through the use of different technologies such as the internet of things and distributed ledger technology (DLT).

It allowed businesses to keep track of enormous amounts of data. The cryptocurrency serves as a purpose of transfer of value and also to trigger smart contracts. It can be exchanged on various exchanges as a means of exchange of value. It lets you pay for Dapps that are fully functional on the Vechain blockchain.

2)

Explain in your own words what the "Evening Star" pattern consists of. What is its hit rate?
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The evening star pattern is a pattern often seen in trading markets and is made by a combination of three candles.

The three candles are 

• A long bullish or uptrend candle 
• A small doji candle it can be bearish or bullish both
• A long bearish or downtrend candle

Every candle in the evening star pattern has a meaning. The long bullish candle indicates that buyers are still in control of the market. The small bearish candle indicates that the sellers are trying to overcome but have not been successful yet. The formation of a large bearish candle can be an indication of a complete trend reversal or even a temporary reversal but it shows the buying trend has been interrupted at least for the moment. 

Hit rate:  According to "Encyclopedia of Candlestick Graphics"  the evening star pattern is  72% in understanding the trend.

3)

Explain in your own words what the pattern "Abandoned Baby" consists of. What is the percentage correct?
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We often see the pattern of Abandoned baby in a downtrend. It is also composed of 3 candles and indicates a trend reversal from downtrend to an uptrend.

 The tree candles in the abandoned baby pattern are

• A candle in the downward direction
• A doji candle located below the first candle
• A bullish candle higher than the second candle

The pattern shows a buying pressure followed by a tussle between buyers and sellers due to which the doji candle formed has an approximately equal closing and opening value and the last candle being a bullish candle indicates that the buyers have finally taken control. 

The bearish abandoned baby candle

A type of abandoned baby candle that is very similar to the evening star pattern is the bearish abandoned baby candle pattern. In this the first candle is a little higher, the second is similar in trend to the first i.e a rather small but bullish candle and the third one a bearish candle. The difference between the two is that the bearish abandoned candle pattern is formed when the sales are high and the trend is fairly bearish.

The hit rate

The accuracy rate of the Bullish Abandoned Baby pattern is 70%. While for Bearish Abandoned Baby pattern it is 69%.

4)

Perform analysis for 3 and 7 recent calendar days for Bitcoin Do you identify any patterns? Show screenshots.
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1) 3 days Analysis

Time frame: 2 hour

As we can see that the patterns we discussed above are not visible in this time farma however some other patterns that I observe were the 

The Bearish engulfing pattern: when a bearish candle completely engulfs the previous bullish candle

The bullish engulfing pattern: It is the opposite of the above in which a bullish candle completely engulfs the previous bearish candle.

2) 7 day analysis

Time frame: 2 hours

Three black cows: three bearish candles indicates the end of a bull trend

Three white soldiers: made of three bullish candles indicates bullish reversal

Evening star pattern: Explained above

Railroad track pattern: formed by a bullish and a bearish candle of equal size

Conclusion

The Homework task and the lecture were really helpful. I really learned some new and important things. Talking about Vechain is interesting as it is a project that has wide uses in daily life.  Understanding the chart patterns while trading helps a lot in identifying the right buying and selling signals and play a substantial role in designing technical analysis.