Basic Terms

Question 1

New York Session

Answer 1

8am - 5pm EST (7am - 4pm CDT)

Question 2

London Session

Answer 2

2am - 11am EST (1am - 10am CDT)

Question 3

Asian Session

Answer 3

4pm - 4am EST (3pm - 3am CDT)

Question 4

Candlestick chart

Answer 4

Represents history of price movement.

Question 5

The candle (body and wick) represents what?

Answer 5

The open, close, high and low of the price movement during a specified amount of time.

Question 6

Bull Candle

Answer 6

Price High
Close price level
BULL ⬆️
Open Price Level
Price Low

Question 7

Bear Candle

Answer 7

Price High
Open Price Level
BEAR ⬇️
Close Price Level
Price Low

Question 8

How many trading styles are there?
And what are they?

Answer 8

4

Scalping - minutes to hours
Intraday - Hours to a day
Swing Trading - Days or Weeks
Position Trading - Months or Years

Question 9

Price waves

Answer 9

Used to determine direction and also timing on entering a trade.

Question 10

Price Movement
Why does price go ⬆️
Why does price go ⬇️

Answer 10

Result of imbalance between buy and sell order quantity and size.
Price ⬆️ : more BUYING than Selling
Price ⬇️ : more SELLING than Buying

Question 11

Price Volume & Volatility

Answer 11

Measured by and are the result of the quantity and size of the orders placed on any financial instrument.

Volume: quantity and size of orders

Volatility: relative height of price waves in market.

Question 12

3 basic price phases

Answer 12

Consolidation
Expansion
Trending

Question 13

Consolidation

Answer 13

Phase where price range moves within a narrow range neither making significant highs or lows. Period where buying/selling is approximately the same.

Question 14

Expansion

Answer 14

Sharp increase of volatility and breakout from the previously defined range.
Shift in market when the buyer or seller gains the upper hand.

Question 15

Trending

Answer 15

Sustained price movement in one clear direction. Upperwards (Bullish) or Downwards (Bearish).

Question 16

Price Action

Answer 16

Refers to the way in which price moves in response to itself.
Anytime a price stops and changes direction, a new level of resistance is formed, which can indicate where price may respond in the future.

Question 17

Support & Resistance

Answer 17

Resistance is like the ceiling (on top)
Support is like the floor (on bottom)

Question 18

Price Action Patterns fall into 2 categories. What are they?

Answer 18

Continuation
Reversal

Question 19

Continuation pattern

Answer 19

Continue in the direction of the primary price phase direction

Question 20

Reversal pattern
What types are there?

Answer 20

Double peak reversal pattern
Triple peak reversal pattern

Predicts that price will change directions against the primary price phase direction

Question 21

Price Action breakout & retest

Answer 21

When price pushes beyond an identified level of resistance, then prices often returns back to retest that resistance before continuing in the direction of the breakout.

Question 22

Price consolidation types

Answer 22

Standard/Lateral
Descending
Ascending
Expanding
Contracting

Question 23

Price Trend

Answer 23

Anytime the price is consistently creating either new highs (uptrend) or new lows (downtrend)