Chart Basics and Price Action: Video 02D

Question 1

What is the best thing to do when you see a top?

Answer 1

Wait a few bars to wait for the reversal to fail. look to BUY

Question 2

Context is…

Answer 2

Looking at all of the bars on the left, and they have to support my trade

Question 3

What is Market Inertia?

Answer 3

80% chance of more of the same behavior. Markets tend to do what they’ve been doing. Look to the left to see what is likely to the right.

Question 4

True or False: In a trend, you will make more money expecting reversals to fail

Answer 4

True. They are minor. They will change a bear trend into a bear flag, that will lead to a resumption of the bear trend. They become resumption of the trend down. (Slide 10)

Question 5

True or False: In a trading range, 80% of breakout attempts will fail

Answer 5

True

Question 6

True or False: The candlestick bars that preceded, are more important than the current bar?

Answer 6

True

Question 7

True or False: When momentum is weak, traders look for the trend to reverse

Answer 7

True. Buy reversal up in weak bear trend.

Question 8

True or False: pressure is an early sign of strength

Answer 8

True.

Question 9

True or False. Candlestick patterns more important than support and resistance

Answer 9

False