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Trading Price > Pro Trader 2 DAY 3 > Flashcards

Pro Trader 2 DAY 3 Flashcards

1
Q

Why is Broad Market used as an indicator?

A

shows potential future price movement of stocks

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2
Q

T/FTwo items that ATR can be used for are determining volatility in the stock or market and helping us to understand better when a move is overextended during a day session

A

T

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3
Q

T/FSome of the uses of Moving Averages include direction and strength of trend, reversion to the mean, and trailing stop exits

A

T

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4
Q

T/Fif volume is high, prices tend to move sideways

A

F

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5
Q

T/Fif price is in a downtrend, then we might sell short on a gap into supply

A

T

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6
Q

indicators are mathematical calculations based on _______ and/or _________

A

price and or volume

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7
Q

indicators help measure overall _________ of the market/stock

A

sentiment

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8
Q

indicators are more significant in the _________ timeframes

A

larger

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9
Q

indicators are a ____________ tool and should be used in the context of our core strategy of SD levels

A

confirmation

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10
Q

Volume is the total amount of ___________

A

shares traded during a given period

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11
Q

The different colors in the volume correspond with the _________, not with _________

A

candlestick, not with more sellers/buyers

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12
Q

ADV

A

average daily volume adv is the average number of shares traded per day over a given range of days

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13
Q

OTA recommends a min ADV of _______ shares

A

1 million

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14
Q

volume

A

volume can often tell us the strength or weakness of a trend

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15
Q

climactic volume

A

volume spikes can often precede a turn in price

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16
Q

volume is light, then momentum is __________

A

weak

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17
Q

volume is high, then momentum is __________

A

strong

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18
Q

_________ volume breakouts followed by ________ volume pullback are good indications price will continue higher.

A

heavya light

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19
Q

moves without volume support are likely to __________

A

be retracted

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20
Q

moving averages are calculated by adding the ________ of the security for a number of time periods

A

closing prices

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21
Q

moving averages smooth the price data to form a ________ following indicator

A

trend

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22
Q

moving averages _________ predict price direction, but rather define the _________ with a lag

A

do notcurrent direction

23
Q

moving average is primarily the summary of ___________

A

momentum and trend

24
Q

SMA

A

SIMPLE MOVING AVERAGE Formed by computing the average closing price of a security over a specific number of periods

25
Q

EMA

A

EMA is similar to SMA except that for EMAs, more weight is given to the more recent prices

26
Q

MA as odds enhancers for supply

A

when shorting using a MA, when the prices move far away from the MA, and approaches supply, then short.

27
Q

MA as odds enhancers for Downtrend

A
28
Q

MA as odds enhancers for Uptrend

A
29
Q

MA as trailing stops

A

exit when price CLOSES below MA

30
Q

MA for breakout

A

enter when price CLOSES below MA

31
Q

ATR is an indicator that tells us __________

A

what the range of price has been in the past

32
Q

why use ATR

A

as traders, we need an edge that will anticipate price range in the future need to measure the distance between fresh opposing S/D areas greater the distance, the larger the range the smaller the distance, the smaller the range

33
Q

once price rallied to its ATR, start looking to ________

A

short

34
Q

once price has dropped to its ATR, start looking to ________

A

buy

35
Q

10 laws of trading

A
  1. use protective stop 2. trade with focused discipline 3. do not overtrade 4. do not trade when there are trading emergencies 5. know difference between gambling/trading 6. use a daily limit loss 7. use small position size to start 8. trade only from your trade plan 9. don’t add to a losing trade 10. learn how to not lose money
36
Q

4 ways to use Net Percent Change from Open to determine good stocks?

A
37
Q

A is a ________Gap B is a ________Gap

A

A. Pro Gap B. Novice Gap

38
Q

A Pro Gap is a gap in the ________ direction of trend

A

opposite

39
Q

A Novice Gap is a gap in the ________ direction of trend

A

same

40
Q

If price is in an Uptrend, then I might look to ________ on a gap down into DZ

A

buy

41
Q

If price is in an Downtrend, then I might look to ________ on a gap up into SZ

A

sell short

42
Q

open gap

A

when the price has not come back up, or down to trade above or below the gap.always be aware of any open gaps, no matter howfar back, especially when corrective behavior has made itself evident

43
Q

filling gap

A

moving into gap

44
Q

traversing

A

closed the gap and moved beyond

45
Q

best timeframe to view gaps

A

15, 60 min chart

46
Q

inside gap

A

gap is still in range of candlesgenerally fill the same day.if gaps into S zone, short. then wait till it fills into D zone. then buy.

47
Q

outside gap

A

gap is outside range of candlesgenerally fill days latergenerally have a trending day. wait for it to create a demand zone.let it pull back into d zone, and buy into tradetechnical stop.

48
Q

what direction of trend do you trade for Pro vs Novice gaps

A

Pro: trade same direction of trendNovice: trade opposite direction of trend

49
Q

fact of outside gap regarding s/d zones

A

outside gaps are stronger supply/d zones

50
Q

3 gap trading tactics

A
51
Q

what does pro gap from correction mean?

A

if Pro gap from Correction, means the start of the impulse move, so get into trade. should be a great trend throughout day

52
Q

bollinger bands

A

find price outside of bands, and inside S/D zonetake profits off when price touches mean

53
Q

gaps - when to trade opening at 930?

A

pro gap up/down outside gappro gap up/down coming out of demand/supplyzone and break trendline

Trading Price (14 decks)

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