Middle School Flashcards
Leading indicators are also known as ___.
oscillators
Lagging indicators are also known as ___.
momentum indicators
What is an oscillator?
An object or data that moves back and forth between two points
Which among the following is not a leading indicator?
a. Stochastic
b. Parabolic SAR
c. Exponential Moving Average
Exponential Moving Average
What is used to calculate the stochastic indicator?
high-to-low range of the time period
Lagging indicators spot trends once they have been established but at the expense of what?
delayed entries
What’s the primary advantage of lagging indicators over leading indicators?
less vulnerable to fakeouts
Which among the following is not a lagging indicator?
Stochastic
Which chart pattern is formed when price consolidates into a box after a downtrend? (Indicating sellers probably need to pause and catch their breath before taking the pair any lower.)
Bearish Rectangle
In a head and shoulders pattern, the distance price moves after a break is usually equal to…
The distance from the high point of the head to the neckline
What does “bilateral” mean when talking about chart patterns?
It means that there is no bias as to where price is headed, the breakout can be either up or down
This chart pattern is very similar to the rectangle. It usually occurs when sellers or buyers pause to gather enough energy to take the price back in the same direction. The shape that price forms after the downtrend or uptrend is a small triangle.
Pennant
What do you call chart patterns that signal that the ongoing trend will resume?
Continuation
What do you call the chart pattern that is formed when a valley is formed, followed by an even lower valley, and then another valley equal to the first valley in a downtrend?
Inverse head and shoulders
Which type of chart pattern forms when price consolidates between an upward support line and a downward resistance line?
Wedge
Whenever price breaks out to the upside in a bullish rectangle, the move up is usually…
The size of the rectangle
Where is a reasonable place to put your stop when trading chart patterns?
The middle of the original formation
Which type of trader is Pivot Point analysis best suited for?
Day Trader
In Pivot Point analysis, what does R stand for?
Resistance
Pivot points are very similar to Fibonacci retracement levels as they pinpoint potential support and resistance levels. Pivot points have one perceived advantage. What is this advantage?
Fibonacci levels are drawn, therefore subjective, while pivot points are calculated, therefore objective
How do range-bound traders typically use pivot points?
To identify potential reversal points where they can place their buy and sell orders
How do sentiment traders use pivot points?
To determine the bullishness or bearishness of a pair
Which market close do traders usually use to determine the high, low, open, and close values of their pivot points?
New York
If S1 is holding, and you decide to buy, where should you look to take profits?
PP
Which of the following is another type of Pivot Point:
Woodie
True or false: Pivot point analysis is enough to trade forex.
False
