Guerrilla Strategy

Question 1

Define a bullish Bunker Bomb?

Answer 1

The Bunker Bomb is a continuation pattern

1. Signal - Impulsive price break of MRH
2. Price prints a low followed by second high (Break of first high invalidates trade)
3. Enter trade once second retrace candle prints

Question 2

Define bearish Bunker Bomb?

Answer 2

A trend continuation pattern

1. Signal - Impulsive price break of MRL
2. Price prints a high followed by second low (Break of first low invalidates trade)
3. Enter trade once second retrace candle prints

Question 3

Define impulsive price action?

Answer 3

During an uptrend, the impulsive moves are those that push prices higher.

The opposite applies to a downtrend where the impulsive waves are those that drive prices lower.

These impulse movements are often made up of large candlestick bodies and are typically quite aggressive, especially compared to corrective moves

Question 4

Define impulsive wave?

Answer 4

Impulse waves are trend-confirming patterns identified by Elliott Wave theory.

Impulse waves consist of five sub-waves that make a net movement in the same direction as the trend of the next-largest degree.

Question 5

Name the three rules that define an impulsive wave formation?

Answer 5

Rule 1: Wave two cannot retrace more than 100 percent of wave one.

Rule 2: Wave three can never be the shortest of waves one, three and five.

(These rules are unbreakable. If one of these rules is violated, then the structure is not an impulse wave)