Terminology: Video 01

Question 1

Define a Bull Pullback

Answer 1

A low of a bar goes below the low of the prior bar. This results in the breakout phase which is very strong, to a channel phase of the trend.

Question 2

What is a channel?

Answer 2

A weaker part of a Bull (Bear) Trend. Eventually evolves into a trading range

Question 3

Is a Bull channel viewed as a bear flag?

Answer 3

Yes, because you get a bear breakout and then transition to a trading range.

Question 4

True of False

A trading Range eventually breaks out. Trend can resume to the upside or downside?

Answer 4

True

Question 5

Define Support

Answer 5

Some point below the current price where a sell-off is likely to pause.

Question 6

Define Resistance

Answer 6

Price above current price. Rally likely to stall or reverse.

Question 7

Define Breakout

Answer 7

A move beyond support or resistance

Question 8

What is an ABC pullback in a Bull Trend?

Answer 8

Bull Trend, then ABC: A three legged correction. 2 legs down, 1 leg up

Question 9

What is an ABC Pullback in Bear trend

Answer 9

Two legs up, then a breakout.

Question 10

Can inside or outside bars be AT the high or low of a bar?

Answer 10

Yes

Question 11

Define Scalp

Answer 11

Quick profit. Usually exit within 1-5 bars.

Question 12

How long is a swing trade held for?

Answer 12

As long as the trend continues

Question 13

Define Tick

Answer 13

Smallest move on stock or futures chart

Question 14

Define Pip

Answer 14

Smallest move on a Forex chart

Question 15

Define Point

Answer 15

Group of ticks or pips

Question 16

Define Lot

Answer 16

Size of trade

Question 17

Define Handle

Answer 17

Round number of price

Question 18

Define countertrend trade

Answer 18

Enter trade in opposite direction

Question 19

Define context

Answer 19

Big Picture and All of the bars left of the current bar

Question 20

Would you buy the bottom of a tight bear channel on a bull reversal bar and follow through bar?

Answer 20

No, likely the reversal will fail and the bear reversal will end up a bear flag

Question 21

Define “Always In” the market

Answer 21

Always in a position either long or short. Always in the trend.

Question 22

Signs of weaking trend

Answer 22

Long wicks on the top (Bull)/ bottom (Bear) of candles, and when it overlaps the breakout point

Question 23

What is a Higher Low Trend reversal ? ( HL MTR) (and HSB)

Answer 23

Also a head and Shoulders Bottom. Bull breakout of a bear channel. You have a low, then reversal up, then a higher low