Bonus Video 02: Trading Patterns on the open

Question 1

Measured Move: How to measure

Answer 1

One measured move Al likes is based upon (From the open) The first series of bars, then there’s a pause bar (a bull bar in bear trend). he expects a measured move down from the open of the first bar in the series to the close or low of the final bar in the series.

Question 2

80% of Opens have reversals

Answer 2

The reversal will usually take place at support or resistance. Within the 1st 90 minutes.

Question 3

Only 20% of the days have a Trend from the open

Question 4

Opening reversal is usually….

Answer 4

Double top
Double Bottom
Wedge Top
Wedge Bottom

Question 5

Double Bottom (DB) Bull Flag at EMA and yesterday’s close.

Question 6

A protective stop is just beyond the reversal or bottom of the rally

Answer 6

Even if I bought higher. When selling, opposite is true.

Question 7

Beginning Traders should only be looking for swing trades and they should mostly swing trade.

Answer 7

That means that they will typically take 1-3 trades per day.

Question 8

No matter how strong an opening tend is, it will reverse __% of the time

Answer 8

50%. Then 50% of the time the reversal will fail and the trend will resume.

Question 9

“ii” are signal bars.

Answer 9

I think. Trade the breakout

Question 10

Whenever you have a reversal and a Bull Flag, it is a ____________ Pattern

Answer 10

Cup and Handle Pattern

You can also call it a Higher Low major Trend Reversal HL MTR

Question 11

Traders are always looking for the market to test the previous days High or Low and then ____________

Answer 11

Reverse

Question 12

__% of the time a Trend from the Open will continue down to the end of the day. __% of the time it will reverse and turn into some type of trading range.

Answer 12

20%

80%

Question 13

When you get a big reversal, it becomes the dominant feature of the day and most likely won’t go back down. it will go sideways or up.

Answer 13