Time Frames, Trends Flashcards
(10 cards)
How many candles can fit on the screen with good visibility?
250-300 candles
What is the default time frame for analysing the price with candle chart?
Daily time frame
Why is it good to follow popular time frames like 1m, 3m, 5m, Daily, Weekly and Monthly?
Because popular time frames are used by majority of the traders and if there is any buy or sell pattern on these time frames, everybody who is on these time frames will buy or sell creating demand or supply which continuous the trend. If you are on unpopular time frames you may not see the same pattern that was formed on popular times. Thus, losing the opportunity.
What are the best time frames for candle stick charts?
5min for Intraday traders
Daily for positional traders
Weekly for long term traders
What is a Trend and how many types of trends are there?
A trend is movement of price in a particular direction. There are three types of trends. They are:
1. Uptrend
2. Downtrend.
3. Sideways
How do you determine whether it is an uptrend?
Higher Highs and Higher Lows
How do you determine whether it is an downtrend?
Lower Highs and Lower Lows
What is Change in Polarity?
If an uptrend or downtrend continuous but in an upper or lower channel depending on the trend then we call it Change of Polarity.
What happens after an breakdown in a uptrend?
- Price could move in uptrend but in a lower channel which is called Change of Polarity. In simple, Change of Polarity means support turned into resistance and vice versa.
- Price could move in downtrend.
Price could move sideways and then take a direction whether up or down.
- Price could move in downtrend.
What happens after an breakdown in a Downtrend?
Ø Price could continue downtrend but in upper channel (Change of Polarity).
Ø Price could go up starting the uptrend or reversal.
Price could go in sideways direction for some time and then it could continue downtrend or go up.
