Steemit Cryptoacademy Re-submitted Homework task ||Season-2||Week-2|| For Voting To Professor @Stream4u| Price Flrecasting| By @abdulsabor
What is Price Forecasting?
If we talk about the crypto context, then It is a process in which we predict the possible price value of any crypto asset in coming to future days. In other way we say that, it is process of predicting the price of any crypto assets by seeing the historical or current data (past data and present data) of any crypto asset. Price forecasting is done many several ways. It can be done in Technical, Basic or Sentimental Analyses.
Why we do Price Forecasting and Importance of Price Forecasting?
It is very important step that we should do before investing is any crypto asset. If we are not involved in this process then it definitely caused for loss in crypto asset. If we are aware of volatility of any asset then we easily invest into particular crypto asset. Because we have proper research about volatility of particular asset. We cannot say that it is true one hundred percent. Because in crypto market volatility is a major issue. But we can resolve these issues by making price forecasting of particular asset. It is very important step because our profit and loss totally dependent on Price forecasting of particular asset so we should take this matter serious while doing price forecasting of any crypto asset.
What is the best Method for Price Forecasting?
Basically, there are three method that are used for estimating price forecasting. We will learn about every single one. Then at the end we will discuss which more effectively fix this forecasting issue.
Technical Analyses
In Technical Analyses we see the chart, pattern, trends, and market support of particular asset. We consider these things while doing technical analyses. We see that what are the chart, pattern and market support say in a specific time period. According to taste of chart and patterns we are able to make decision. We find it positive then we will move forward and invest in a particular assert.
Fundamental Analyses
Next is Fundamental Analyses in which we look at the company profit and loss, balance sheet and performance of management team. We found that are the process of company is running well than we will surely invest into it. We do not take into account the current market trend or other stuff like that. We just the weekly, monthly and yearly reports of particular asset.
Sentimental Analyses
In Sentimental Analyses we just the see the volatility of particular asset. Because volatility had a huge effect on our profit and loss. If we predict it well then it turns our small investment into huge profit within the short span of time. We can find the volatility of specific crypto asset by visiting the media channels, Listening the debate on asset and also keep in touch with news about specific asset.
Which one is better?
These all are the important for price forecasting. But as we know that every individual has difference point view and perception. Way of thinking of every individual is different. Every one thing from different angle. In this way my perception is that The Technical Analyses is better option for doing the price forecasting of any crypto asset. Reason is that in technical analyses we will deeply study about the past chart of the crypto asset. We will also examine the fluctuation of crypto asset with time frame. In this way it provides ease in making the decision about price forecasting. In this way Technical analyses is better option for price forecasting.
Take any Crypto Asset Chart graph and explain how to do Price Forecasting? OR Take any Crypto Assets Chart graph & as per its current price tell us what will be its future price for next 1 week or 1 month? You can predict for any direction up or down but explain it properly on what basis you have predicted the price.
In this chart we see the fluctuation of crypto asset. By examine the ups and down we will predict the price of a crypto asset. For this purpose, I will choose the ETH/XRP pair. Trading view is used in this chart patterns.
In this screenshot we will see that first support, after that the price goes up and then few days later about 8 of September the second support is again. In this chart we can see that the price chart is $642. After long interval of time altogether 1 month later out support becomes resistance.
In the next chart, when the price of asset is about $630. I caught two support at the bottom. It is a time of me to buy the crypto asset price is about to fell. In this stage I bought the asset by helping the technical analyses.
As we see in the Figure. after trading enter of min the asset price is gone up and finally hit the target that I have define. It hits the resistance line which makes profit for me. When I observe the two support from bottom at that time price is $630. But at that time when price gone up it become $657. I have made much profit from this trade.
In the next figure we will se the price of asset is increasing more. It crosses the resistance line. And move up. Its price become 730 USD. In this way it creates a new hive on the top. It will resistive after that, in this way I can consider entering the trade again.
Price Forecasting in crypto asset for the sake of making good profit is very important. We can not make good profit without price forecasting. All the methods are good that we are learnt so far. The things matter that is how we can implement it in more concise way. It totally depends on the degree of intelligence that we used while doing price forecasting. Price Forecasting is an important part in making the profit from the crypto asset.
Thanks to professor:
Best Regards
@abdulsabor
This post not currated yet. This why i repost it here is the old post link.
https://steemit.com/hive-108451/@abdulsabor/crypto-academy-or-or-week-10-or-or-homework-post-for-stream4u-or-or-price-forecasting
Here the evidence of rating that 8/10