Measured Moves (MM) Flashcards
Instead of finding Buyers at the MM Target, we BO and had follow-through; when that happens what should I do?
When that happens I must look for the next downside Target
Bear BO with very bad follow-through, is the MM likely to occur to the downside or upside?
MM likely to occur to the upside due to the bad follow-through and the strong reversal down at the MM target tells me eager Bears sold there and Bulls took profit there
Whenever I see a strong BO like this, there is a 60% chance of a MM up and a 40% chance of a MM down. TRUE or FALSE?
TRUE Traders will buy that close and the is a 60-70% chance we will go up for some kind of MM
When the Market has a BO what doo traders assume?
Traders assume the market will at least have a 2nd Leg up, maybe we will go up for a MM
When in a TR what how should I identify potential MMs?
Always look for MM based on the height of TR
Remember a TR is an area of agreement. So middle of value area for bulls & bears can be possible middle of the swing. Middle of range often leads to MM when the trend resumes
Remember a TR is an area of agreement. So middle of value area for bulls & bears can be possible middle of the swing. Middle of range often leads to MM when the trend resumes
What are some methods of calculating a MM(Measured Move)?
If the leg is strong enough for traders to believe 2nd leg is likely, what expectations should they set for the 2nd leg up?
They expect the 2nd leg to be about the same size as the 1st leg
Leg 1 = Leg 2 is common with what kind of Price Action?
It is common with TR Price action, and also Spike and Channel Bull/Bear Trends
When a BO is strong usually the 1st Resistance Level usually will not stop BO. TRUE or FALSE?
True When there is a strong enough BO (strong trend), we will probably get at least one more leg up
If BO ignores resistance what should the trader look for?
Look for Higher Resistance, if no pause at one MM target, then most computers are using other ones, LOOK FOR THEM!
A lot of times the end of a MM is not clear until after a reversal up
A lot of times the end of a MM is not clear until after a reversal up
Even though 80% of Trend reversals fail, where do all Bull Trends end?
Almost all Bull Trends end at resistance even though the majority of trend reversals fail, that is why it is important to keep looking for higher resistance levels after a resistance level is broken
If there is a confluence level at a resistance does this have higher odds of a Bull Trend ending?
Yes there is higher chances of the Bull Trend ending so look to take profits there as the Bears will step in and begin selling
When there are several options to use to start the map out the MM target which one is best to use?
Use the first one and if its broken keep using other options until the market (computers) say this is the target.
