Bootcamp Lesson 1 Flashcards
What does VOEX indicate when the price action is stable?
When the price action is stable, VOEX indicates that the price is expected to rise.
Give an example of a period when Revolt was in the stability zone. What happened to the price action during that period?
A great example of a period when Revolt was in the stability zone is shown in the notes. During that period, the price action moved positively to the upside.
What does it mean when VOEX is in the inhibition zone?
When VOEX is in the inhibition zone, it indicates that the price is moving up.
What happened to the price when VOEX moved into the inhibition zone?
When VOEX moved into the inhibition zone, the price moved from about $78 to about $373.
Describe the effect of VOEX moving into the propagation zone on the price.
When VOEX moves into the propagation zone, it indicates that something is breaking in volatility, IP, and other calculations. This requires extreme caution on the long side or introduces the concept of a short trade.
What is the significance of VOEX dropping into the propagation zone and exhibiting a hard spike?
When VOEX drops into the propagation zone with a hard spike, it indicates that something is happening that warrants extreme caution on the long side or introduces a concept to a short trade, such as a put trade.
What happened to the price following VOEX dropping into the propagation zone and exhibiting a hard spike?
After VOEX dropped into the propagation zone with a hard spike, the price of the stock fell from about $313 to a low of about $88.
How can low X be used to take trades with triggers?
Low X can be used to take trades with triggers by identifying a setup where you want to be short, below or flat above the trigger, and then taking the trade knowing that the price is going down.
What are the odds and why did the triggers get the most bearish cross?
The odds and reasons behind the triggers getting the most bearish cross are not explained in the provided course notes.
What happened on August 30th regarding the VOEX turning bearish?
On August 30th, the VOEX turned bearish, indicating a potential decline in price.
How can the LPM setup be used to identify a bearish crossover?
The LPM setup can be used to identify a bearish crossover by observing when the blue is on top and then analyzing additional indicators for confirmation.
What is the significance of the most extreme velocity print?
The most extreme velocity print indicates a strong downward movement and can be used to make trading decisions.
What is meant by counting new lows with retracement?
Counting new lows with retracement means considering a new low only if there is a significant pullback, as it marks a potential low point in the price.
How can systems be used together to create low-risk and high-reward trades?
Systems can be used together to create low-risk and high-reward trades by integrating different indicators and triggers to identify optimal entry and exit points.
What is the focus of the discussion on Adsk?
The focus of the discussion on Adsk is not provided in the given course notes.
What is the purpose of the VOEX coiling pattern?
The VOEX coiling pattern is a stabilizing movement in stock price, usually indicative of a rally starting.
What does it mean when the stock is in the inhibition zone?
Being in the inhibition zone implies that the most recent price action is being worked against, often resulting in a decline in price.
What is the significance of a spike in the VOEX?
A spike in the VOEX indicates extreme resistance and usually resolves to the downside in the short term.
What does it suggest when the VOEX meets the stable zone?
When the VOEX meets the stable zone, it signifies that a peak has been reached.
What is a coiling pattern?
A coiling pattern is a spiky rapid descent followed by a rapid spiky ascent into the stability zone, often initiating a rally.
What is the ideal time frame to focus on when observing the price action?
The hourly time frame is suitable for observing price action and identifying patterns.
How can one take advantage of the coiling pattern in price action?
By recognizing the coiling pattern, traders can anticipate potential rallies and make profitable trades.
What is the first thing to check when looking at weekly velocity?
The first thing to check when looking at weekly velocity is whether it provides resistance or if sellers are not strong at the weekly trigger.
How can you determine if sellers are not strong at the weekly trigger?
If the weekly velocity looks weak and does not indicate strong selling pressure, it suggests that sellers are not strong at the weekly trigger.
What does strong weekly velocity indicate?
Strong weekly velocity indicates a powerful momentum that is unlikely to be broken.
Why is it important to wait for the hourly trigger to cross above the weekly trigger?
Waiting for the hourly trigger to cross above the weekly trigger provides confirmation that bulls have taken control over the weekly trigger.
When does it indicate that a rally is starting?
When VOEX shows a coiling pattern and then moves back into stability, it indicates that a rally is starting.
Do you need the hourly trigger to cross above the weekly trigger before entering a position if a rally is starting?
No, if you know that a rally is starting, you don’t need the hourly trigger to cross above the weekly trigger before entering a position.
What can be used as a stop loss in this scenario?
In this scenario, the hourly trigger can be used as a stop loss.
What is the benefit of using the daily trigger as a stop loss?
Using the daily trigger as a stop loss allows for holding the position as long as VOEX is moving higher, knowing that dips will be bought up.
When do alarms trigger according to the course notes?
Alarms trigger when VOEX fakes and invokes spikes like the ones described.
What is the significance of VOEX divergence?
VOEX divergence indicates the end of a rally and suggests upcoming downside.
What does it mean when VOEX moves lower while price moves higher?
When VOEX moves lower while price moves higher, it is a bearish indication and suggests the top is in.
What happened on June 15 according to the course notes?
On June 15, there was a classic example of VOEX divergence where price moved higher while VOEX moved lower.
What does VOEX instability indicate about a stock?
VOEX instability indicates that the stock is stable and suggests further upside.
What is VOEX propagation a precursor for?
VOEX propagation is a precursor for downside movement.
Are stocks in a stable state always expected to go up?
No, there are some stocks where VOEX stability indicates downside movement.