Session #1 - my notes

Question 1

What is the name of the platform we’ll be using?

Answer 1

MetaTrader 4

Question 2

David set me up with ? charts each on the ? minute time interval

Answer 2

6 charts

5 minutes interval

Question 3

What is the benefit of shorter timeframes?

Answer 3

less time to find trades

Question 4

What kind of candle starts a possible

trade?

Answer 4

signal

Question 5

A ______ candle is one that has the body of the candle in the upper half of the entire candle, including wicks.

Answer 5

signal

Question 6

What do you do after you find a signal candle?

Answer 6

draw a line above it (called a trigger line)

Question 7

When do you draw a trigger line?

Answer 7

after you find a signal candle

Question 8

Is a trigger line vertical or horizontal?

Answer 8

horizontal

Question 9

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.

Answer 9

indicators

Question 10

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?

Answer 10

no trade

Question 11

What are the three indicators?

Answer 11

Bollinger, Stochastic and CCI

Question 12

Are Bollinger Bands an indicator?

Answer 12

yes

Question 13

Are Stochastics an indicator?

Answer 13

yes

Question 14

Is CCI an indicator?

Answer 14

yes

Question 15

The profile name David set up is called what?

Answer 15

DVD1

Question 16

How many Bollinger Bands are there?

Answer 16

3

Question 17

What does the middle Bollinger Band mean?

Answer 17

normal, not over or under sold

Question 18

What does the top Bollinger Band mean?

Answer 18

overbought

Question 19

What does the bottom Bollinger Band mean?

Answer 19

oversold

Question 20

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.

Answer 20

oversold

Question 21

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.

Answer 21

overbought

Question 22

In which Bollinger Band do you want to trade?

Answer 22

normal

Question 23

What is a Doji candle?

Answer 23

A candle that opens and closes at the same price.

Question 24

What color are bottom wicks (always)?

Answer 24

red

Question 25

What color are top wicks (always)?

Answer 25

green

Question 26

One lot is how much money?

Answer 26

$100,000

Question 27

How much money is one PIP?

Answer 27

$10

Question 28

What percentage of winning trades are we shooting for?

Answer 28

90%

Question 29

What color candle to you never buy on?

Answer 29

red

Question 30

How much are Forex commissions?

Answer 30

Not fixed, seem to be between $10 and $20

Question 31

Always remember to deduct the __________ cost from your trade results to get the true net cost or profit of the a trade.

Answer 31

commission

Question 32

What is the name of the first trade I’m learning?

Answer 32

Blow off Bottom

Question 33

What do the Bollinger Bands do for you? How do they help you trade?

Answer 33

they tell you if the market is over sold or over bought or neither.