Session #1 - my notes Flashcards
What is the name of the platform we’ll be using?
MetaTrader 4
David set me up with ? charts each on the ? minute time interval
6 charts
5 minutes interval
What is the benefit of shorter timeframes?
less time to find trades
What kind of candle starts a possible
trade?
signal
A ______ candle is one that has the body of the candle in the upper half of the entire candle, including wicks.
signal
What do you do after you find a signal candle?
draw a line above it (called a trigger line)
When do you draw a trigger line?
after you find a signal candle
Is a trigger line vertical or horizontal?
horizontal
After you spot a signal candle and set trigger line, you then check the __________ to see if they give you a green light to open a trade.
indicators
In order to get a green light to trade, you need to check the indicators to make sure they agree. What if they don’t agree?
no trade
What are the three indicators?
Bollinger, Stochastic and CCI
Are Bollinger Bands an indicator?
yes
Are Stochastics an indicator?
yes
Is CCI an indicator?
yes
The profile name David set up is called what?
DVD1
How many Bollinger Bands are there?
3
What does the middle Bollinger Band mean?
normal, not over or under sold
What does the top Bollinger Band mean?
overbought
What does the bottom Bollinger Band mean?
oversold
What does this describe?
A condition in which the price of an underlying asset has fallen sharply to a level below where its true value resides. This condition is usually a result of market overreaction or panic selling and is generally considered short term in nature.
oversold
What does this describe?
A situation in which the demand for a certain asset or security unjustifiably pushes the price of that asset or underlying asset to levels that are not justified by fundamentals.
overbought
In which Bollinger Band do you want to trade?
normal
What is a Doji candle?
A candle that opens and closes at the same price.
What color are bottom wicks (always)?
red
What color are top wicks (always)?
green
One lot is how much money?
$100,000
How much money is one PIP?
$10
What percentage of winning trades are we shooting for?
90%
What color candle to you never buy on?
red
How much are Forex commissions?
Not fixed, seem to be between $10 and $20
Always remember to deduct the __________ cost from your trade results to get the true net cost or profit of the a trade.
commission
What is the name of the first trade I’m learning?
Blow off Bottom
What do the Bollinger Bands do for you? How do they help you trade?
they tell you if the market is over sold or over bought or neither.
