Chart Basics and Price Action: Video 02D

Question 1

Context is…

Answer 1

Looking at all of the bars on the left, and they have to support my trade

Question 2

What is Market Inertia?

Answer 2

80% chance of more of the same behavior. Markets tend to do what they’ve been doing. Look to the left to see what is likely to the right.

Question 3

True or False

In a trend, you will make more money expecting reversals to fail

Answer 3

True. They are minor. They will change a bear trend into a bear flag, that will lead to a resumption of the bear trend. They become resumption of the trend down. (Slide 10)

Question 4

True or False

In a trading range, 80% of breakout attempts will fail

Answer 4

True

Question 5

True or False

The candlestick bars that preceded, are more important than the current

Answer 5

True

Question 6

True or False

When momentum is weak, traders look for the trend to reverse

Answer 6

True. Buy reversal up in weak bear trend.

Question 7

True or False

Pressure is an early sign of strength

Answer 7

True.

Question 8

True or False

Candlestick patterns are more important than support and resistance

Answer 8

False