Pro Trader 2 DAY 3

Question 1

Why is Broad Market used as an indicator?

Answer 1

shows potential future price movement of stocks

Question 2

T/FTwo items that ATR can be used for are determining volatility in the stock or market and helping us to understand better when a move is overextended during a day session

Answer 2

T

Question 3

T/FSome of the uses of Moving Averages include direction and strength of trend, reversion to the mean, and trailing stop exits

Answer 3

T

Question 4

T/Fif volume is high, prices tend to move sideways

Answer 4

F

Question 5

T/Fif price is in a downtrend, then we might sell short on a gap into supply

Answer 5

T

Question 6

indicators are mathematical calculations based on _______ and/or _________

Answer 6

price and or volume

Question 7

indicators help measure overall _________ of the market/stock

Answer 7

sentiment

Question 8

indicators are more significant in the _________ timeframes

Answer 8

larger

Question 9

indicators are a ____________ tool and should be used in the context of our core strategy of SD levels

Answer 9

confirmation

Question 10

Volume is the total amount of ___________

Answer 10

shares traded during a given period

Question 11

The different colors in the volume correspond with the _________, not with _________

Answer 11

candlestick, not with more sellers/buyers

Question 12

ADV

Answer 12

average daily volume adv is the average number of shares traded per day over a given range of days

Question 13

OTA recommends a min ADV of _______ shares

Answer 13

1 million

Question 14

volume

Answer 14

volume can often tell us the strength or weakness of a trend

Question 15

climactic volume

Answer 15

volume spikes can often precede a turn in price

Question 16

volume is light, then momentum is __________

Answer 16

weak

Question 17

volume is high, then momentum is __________

Answer 17

strong

Question 18

_________ volume breakouts followed by ________ volume pullback are good indications price will continue higher.

Answer 18

heavya light

Question 19

moves without volume support are likely to __________

Answer 19

be retracted

Question 20

moving averages are calculated by adding the ________ of the security for a number of time periods

Answer 20

closing prices

Question 21

moving averages smooth the price data to form a ________ following indicator

Answer 21

trend

Question 22

moving averages _________ predict price direction, but rather define the _________ with a lag

Answer 22

do notcurrent direction

Question 23

moving average is primarily the summary of ___________

Answer 23

momentum and trend

Question 24

SMA

Answer 24

SIMPLE MOVING AVERAGE Formed by computing the average closing price of a security over a specific number of periods

Question 25

EMA

Answer 25

EMA is similar to SMA except that for EMAs, more weight is given to the more recent prices 

Question 26

MA as odds enhancers for supply

Answer 26

when shorting using a MA, when the prices move far away from the MA, and approaches supply, then short.

Question 27

MA as odds enhancers for Downtrend

Question 28

MA as odds enhancers for Uptrend

Question 29

MA as trailing stops

Answer 29

exit when price CLOSES below MA

Question 30

MA for breakout

Answer 30

enter when price CLOSES below MA

Question 31

ATR is an indicator that tells us __________

Answer 31

what the range of price has been in the past    

Question 32

why use ATR

Answer 32

as traders, we need an edge that will anticipate price range in the future need to measure the distance between fresh opposing S/D areas greater the distance, the larger the range the smaller the distance, the smaller the range

Question 33

once price rallied to its ATR, start looking to ________

Answer 33

short

Question 34

once price has dropped to its ATR, start looking to ________

Answer 34

buy

Question 35

10 laws of trading

Answer 35

1. use protective stop 2. trade with focused discipline 3. do not overtrade 4. do not trade when there are trading emergencies 5. know difference between gambling/trading 6. use a daily limit loss 7. use small position size to start 8. trade only from your trade plan 9. don't add to a losing trade 10. learn how to not lose money

Question 36

4 ways to use Net Percent Change from Open to determine good stocks?

Question 37

A is a ________Gap B is a ________Gap

Answer 37

A. Pro Gap B. Novice Gap

Question 38

A Pro Gap is a gap in the ________ direction of trend

Answer 38

opposite

Question 39

A Novice Gap is a gap in the ________ direction of trend

Answer 39

same

Question 40

If price is in an Uptrend, then I might look to ________ on a gap down into DZ

Answer 40

buy  

Question 41

If price is in an Downtrend, then I might look to ________ on a gap up into SZ

Answer 41

sell short 

Question 42

open gap

Answer 42

when the price has not come back up, or down to trade above or below the gap. always be aware of any open gaps, no matter howfar back, especially when corrective behavior has made itself evident

Question 43

filling gap

Answer 43

moving into gap

Question 44

traversing

Answer 44

closed the gap and moved beyond

Question 45

best timeframe to view gaps

Answer 45

15, 60 min chart

Question 46

inside gap

Answer 46

gap is still in range of candlesgenerally fill the same day.if gaps into S zone, short. then wait till it fills into D zone. then buy.

Question 47

outside gap

Answer 47

gap is outside range of candlesgenerally fill days latergenerally have a trending day.  wait for it to create a demand zone.let it pull back into d zone, and buy into tradetechnical stop.

Question 48

what direction of trend do you trade for Pro vs Novice gaps

Answer 48

Pro: trade same direction of trendNovice: trade opposite direction of trend

Question 49

fact of outside gap regarding s/d zones

Answer 49

outside gaps are stronger supply/d zones

Question 50

3 gap trading tactics

Question 51

what does pro gap from correction mean?

Answer 51

if Pro gap from Correction, means the start of the impulse move, so get into trade.  should be a great trend throughout day

Question 52

bollinger bands

Answer 52

find price outside of bands, and inside S/D zonetake profits off when price touches mean

Question 53

gaps - when to trade opening at 930?

Answer 53

 pro gap up/down outside gappro gap up/down coming out of demand/supplyzone and break trendline