Hello everyone, In this post I am going to complete homework task given by professor @stream4u . In this homework I will describe about price forecasting and things related to it. So lets get started. ![Capture.JPG](https://cdn.steemitimages.com/DQmWy19ka7DNDefkBjZs23cLAgV2HcvPUaCaAbxcWkCmu2r/Capture.JPG) [Source](https://snappa.com/app/graphic/78087770-44fa-4b39-9f87-b7adcc8ba6b5) ## Question 1 #### What is Price Forecasting? It is the method used to predict the future of any asset or product. It helps them to understand the market of any product and eventually gives signal about how will the product value occur in future. It is the tool by which we can predict about ups and down of value of any product or assets by evaluating or performing fundamental analysis of product's market. Right now Crypto traders and stock traders uses price forecasting methods to buy and sell their assets. The analysis either depends on reviewing charts, graphs and past prices or by studying company's internal situation or it may based on the news and public talk about following product. ## Question 2: #### Discuss on why Price Forecasting is needed? Price forecasting is much needed factor to remain in any market. If any investor neglect the value of price forecasting and directly enters the market will be like a man who put all his money in others pocket instead of bank (that the money will never return to him). If a investor wants to earn more from his investment, he must have know when to enter in a market and how long he must hold himself there. These factors can only known by using different price forecasting techniques. ## Question 3: #### What Methods are best you feel for Price Prediction/Forecasting? Price forecasting comprises of three main methods of analysis, 1- Technical Analysis. 2- Fundamental Analysis. 3- Sentimental Analysis. #### <center>TECHNICAL ANALYSIS</center> Technical analysis help define us three major points, 1- When to buy 2- When to sell 3- When to exit Before entering into any market we have to first make a strategy regarding our investments like in crypto market, a investor first chooses the points of entering and bidding. He also have his exit points in mind like how much he have to make profit or in case he failed how much loss he can bear. All these factors can be known through technical analysis. The way of doing technical analysis by studying charts, resistance and support, bouncing back of prices and etc. These factors help build a technical view about the future of product. #### <center>FUNDAMENTAL ANALYSIS</center> The process in which we study the business, profit and future growth of any company is termed as fundamental analysis. In fundamental analysis the investor must keep an eye on all over the performance of company. He analyzes the services and dealings of company and test the management that either they are worthy of any investments. Fundamental analysis help keep long term investments by looking on their monthly or yearly balance sheets and their profits. Similarly to the crypto currencies a investor must look into the coin cap and its origin and its blockchain that either it is suitable for future investments. #### <center>SENTIMENTAL ANALYSIS</center> In sentimental analysis the investor instead of looking into ups and downs of product will look into the newspaper and magazines or social media and analyze the situation of product in outer world that what people may think about the product. Sentimental analysis is the reason due to which companies always shows positivity around them and tried to hide their negativities so that the people will come for them. In many cases it can be seen that when any celebrity or big political or business personality shows his dislike about any specific product or company, their followers also creates the same hype about that product which results in a negative or decline in the progress of that product or company. Sentimental analyst always look for information from people regarding his desired product so that he may predict the future of that product. ## QUESTION #4 PRICE FORECASTING TUTORIAL: I have choosen BTC and their is so much fluctuation in market and this will explain us more about the forecasting and technical analysis lets see the resistance of support of this coin it show strong resistance and even break the resistance twice and thrice ![image.png](https://cdn.steemitimages.com/DQmSDbMGpBswLSTGkP3i5q2axcKvJDpxELwoWQ3TxgenLKd/image.png) [source](https://www.tradingview.com/chart/KKEAcf63/) Now we will use the indicators which will illustrates more about the prediction of technical analysis of this coin and surely gonna help us out to mark the price of entry and exit. I have uses three indicators of EMA and they are giving good response in this consolidated market ![image.png](https://cdn.steemitimages.com/DQmRotCA6n8aUgb3vzu8UoDzxM37PchZBnwH3jPWTWxKgXY/image.png) [source](https://www.tradingview.com/chart/KKEAcf63/) Here I had use 1 day time frame and it show best prediction making good contract. ![image.png](https://cdn.steemitimages.com/DQmf8Dq4uAxYXWMfxxuKp8aMLMY5srYetrVZBLA6cZnMTC5/image.png) [source](https://www.tradingview.com/chart/KKEAcf63/) If you take a trade in 1 day trading you gonna smash 1k 2k easily and it seems good for new commers!! althoug I feel that now using stop loss and take the trade because btc seems to go again as my analysis or wait few days as its value may be dump more, please do technical analysis and then take trades. Wicks and candles are seems good, you can also see the down trend of btc for last several days because there bounce back as you can see in the image from price 49K$ and it hit 51k$ might seems good profit for swing trader! ![image.png](https://cdn.steemitimages.com/DQmV63dR2a2wPewV3u8YcDStU1WXKfaY3vPKUVxGrExyfhs/image.png) [source](https://www.tradingview.com/chart/KKEAcf63/) Here I made arrows which clearly show the trend line of entry and exit and I had mark all the lines where you can get easily good trades in past so do this analysis in future now that how will the price gonna roll again! ## Conclusion: In order to conclude that I must say that through price forecasting investors can bring more profit to their business by taking essential measures with the help of it. It helps investor to know about different trends market will face and he has know that when to get in or out from the market. #### <center>C.C @Stream4u @steemcurator01 @steemcurator02 @steemcurator07</center> That's all from my part I hope that you will like it and will give your precious opinion about my homework.