Middle School

Question 1

A leading indicator gives a signal before?

Answer 1

the new trend or reversal occurs.

Question 2

A lagging indicator gives a signal?

Answer 2

after the trend has started

Question 3

An oscillator is any object or data that?

Answer 3

moves back and forth between two points.

Question 4

An oscillator will usually signal “buy” or “sell” with the only exception being instances?

Answer 4

when the oscillator is not clearly at either end of the buy/sell range.

Question 5

The Stochastic, Parabolic SAR, and Relative Strength Index (RSI) are all?

Answer 5

oscillators

Question 6

Oscillators work under the premise that as momentum begins to slow?

Answer 6

fewer buyers (if in an uptrend) or fewer sellers (if in a downtrend) are willing to trade at the current price.

Question 7

When a double top or double bottom chart pattern appears, a?

Answer 7

trend reversal has begun.

Question 8

A double top is a reversal pattern that is formed after there is an?

Answer 8

extended move up.

Question 9

Double tops are a?

Answer 9

trend reversal formation so you’ll want to look for these after there is a strong uptrend.

Question 10

The double bottom is also a?

Answer 10

trend reversal formation, but this time we are looking to go long instead of short.

Question 11

The head and shoulders chart pattern is a?

Answer 11

reversal pattern and most often seen in uptrends.

Question 12

A head and shoulders pattern is a?

Answer 12

peak (shoulder), followed by a higher peak (head), and then another lower peak (shoulder).

Question 13

In a head and shoulders pattern the neckline is drawn by?

Answer 13

connecting the lowest points of the two troughs.

Question 14

The slope of the neckline in a head and shoulders pattern can either be?

Answer 14

up or down. Typically, when the slope is down, it produces a more reliable signal.

Question 15

Wedges signal?

Answer 15

a pause in the current trend. When you encounter this formation, it signals that Forex traders are still deciding where to take the pair next.

Question 16

A rising wedge is formed when?

Answer 16

price consolidates between upward sloping support and resistance lines.

Question 17

If the rising wedge forms after an uptrend, it’s usually a?

Answer 17

bearish reversal pattern.

Question 18

if a rising wedge forms during a downtrend, it could signal a?

Answer 18

continuation f the down move.

Question 19

The falling wedge can either be a?

Answer 19

reversal or continuation signal.

Question 20

The falling wedge is a?

Answer 20

bullish chart pattern.

Question 21

A rectangle is a chart pattern formed when?

Answer 21

price is bounded by parallel support and resistance levels.

Question 22

A bearish rectangle is formed when?

Answer 22

the price consolidates for a while during a downtrend.

Question 23

After an uptrend, the price paused to consolidate for a bit you can call this a?

Answer 23

bullish rectangle chart pattern.

Question 24

Similar to rectangles, pennants are?

Answer 24

continuation chart patterns formed after strong moves.

Question 25

A bearish pennant is formed during a/

Answer 25

a steep, almost vertical, downtrend.

Question 26

an ascending triangle occurs when?

Answer 26

there is a resistance level and a slope of higher lows.

Question 27

n descending triangle chart patterns, there is a?

Answer 27

string of lower highs which forms the upper line. The lower line is a support level in which the price cannot seem to break.

Question 28

What are the 6 reversal patterns?

Answer 28

Double Top

Double Bottom

Head and Shoulders

Inverse Head and Shoulders

Rising Wedge

Falling Wedge

Question 29

Professional Forex traders and market makers use pivot points to?

Answer 29

identify potential support and resistance levels.

Question 30

Simply put, a pivot point and its support/resistance levels are areas at which the?

Answer 30

direction of price movement can possibly change.

Question 31

Range-bound traders use pivot points to?

Answer 31

identify reversal points. They see pivot points as areas where they can place their buy or sell orders.

Question 32

Breakout forex traders use pivot points to recognize?

Answer 32

key levels that need to be broken for a move to be classified as a real deal breakout.

Question 33

What are the 3 pivot point acronyms?

Answer 33

PP stands for Pivot Point.

S stands for Support.

R stands for Resistance.

Question 34

The pivot point and associated support and resistance levels are calculated by?

Answer 34

using the last trading session’s open, high, low, and close.

Question 35

There is one other way to incorporate pivot points into your forex trading strategy, and that’s to use it to?

Answer 35

gauge market sentiment.

Question 36

If the price breaks through the pivot point to the top, it’s a sign that?

Answer 36

traders are bullish on the pair and you should start buying the pair.

Question 37

What are the four main ways to calculate for pivot points:

Answer 37

Standard

Woodie

Camarilla

Fibonacci.