A leading indicator gives a signal before?
the new trend or reversal occurs.
A lagging indicator gives a signal?
after the trend has started
An oscillator is any object or data that?
moves back and forth between two points.
An oscillator will usually signal “buy” or “sell” with the only exception being instances?
when the oscillator is not clearly at either end of the buy/sell range.
The Stochastic, Parabolic SAR, and Relative Strength Index (RSI) are all?
Oscillators work under the premise that as momentum begins to slow?
fewer buyers (if in an uptrend) or fewer sellers (if in a downtrend) are willing to trade at the current price.
When a double top or double bottom chart pattern appears, a?
trend reversal has begun.
A double top is a reversal pattern that is formed after there is an?
extended move up.
Double tops are a?
trend reversal formation so you’ll want to look for these after there is a strong uptrend.
The double bottom is also a?
trend reversal formation, but this time we are looking to go long instead of short.
The head and shoulders chart pattern is a?
reversal pattern and most often seen in uptrends.
A head and shoulders pattern is a?
peak (shoulder), followed by a higher peak (head), and then another lower peak (shoulder).
In a head and shoulders pattern the neckline is drawn by?
connecting the lowest points of the two troughs.
The slope of the neckline in a head and shoulders pattern can either be?
up or down. Typically, when the slope is down, it produces a more reliable signal.
a pause in the current trend. When you encounter this formation, it signals that Forex traders are still deciding where to take the pair next.
A rising wedge is formed when?
price consolidates between upward sloping support and resistance lines.
If the rising wedge forms after an uptrend, it’s usually a?
bearish reversal pattern.
if a rising wedge forms during a downtrend, it could signal a?
continuation f the down move.
The falling wedge can either be a?
reversal or continuation signal.
The falling wedge is a?
bullish chart pattern.
A rectangle is a chart pattern formed when?
price is bounded by parallel support and resistance levels.
A bearish rectangle is formed when?
the price consolidates for a while during a downtrend.
After an uptrend, the price paused to consolidate for a bit you can call this a?
bullish rectangle chart pattern.
Similar to rectangles, pennants are?
continuation chart patterns formed after strong moves.
A bearish pennant is formed during a/
a steep, almost vertical, downtrend.
an ascending triangle occurs when?
there is a resistance level and a slope of higher lows.
n descending triangle chart patterns, there is a?
string of lower highs which forms the upper line. The lower line is a support level in which the price cannot seem to break.
What are the 6 reversal patterns?
Head and Shoulders
Inverse Head and Shoulders
Professional Forex traders and market makers use pivot points to?
identify potential support and resistance levels.
Simply put, a pivot point and its support/resistance levels are areas at which the?
direction of price movement can possibly change.
Range-bound traders use pivot points to?
identify reversal points. They see pivot points as areas where they can place their buy or sell orders.
Breakout forex traders use pivot points to recognize?
key levels that need to be broken for a move to be classified as a real deal breakout.
What are the 3 pivot point acronyms?
PP stands for Pivot Point.
S stands for Support.
R stands for Resistance.
The pivot point and associated support and resistance levels are calculated by?
using the last trading session’s open, high, low, and close.
There is one other way to incorporate pivot points into your forex trading strategy, and that’s to use it to?
gauge market sentiment.
If the price breaks through the pivot point to the top, it’s a sign that?
traders are bullish on the pair and you should start buying the pair.
What are the four main ways to calculate for pivot points: