Support/Resis - Alt Chart - Trend Lines Flashcards
The 50% line can be resistant or support. True or False
False it is neutral
What are the two waves and how do they move?
Impulse/Corrective - Fast-Longer/Slow-Shorter
Can support & resistant lines be tested multiple times? Yes or No
Yes
How many years should we go back with Technical Analysis?
As far as 10 years or more.
When does a zone have the most power to support the price?
When it is least Active
When does a zone have the probability to change the direction of the price?
When its most active
When are demand zones most powerful?
When the price is cheap and in the demand zone
How do we locate origin zones?
At the lowest Swing Low for demand zone and highest Swing High for supply of the chart
When are buyers winning?
During an uptrend
When are sellers winning?
During a downtrend
In an uptrend, we are looking for resistant lines to become what?
Support Lines
In a downtrend, we are looking for support lines to become what?
Resistant Lines
Where does a bearish trend line go?
At the top of the downtrend pattern
Where does a bullish trend line go?
At the bottom of the trend pattern
When is a trend line out of play?
When price breaks the trend line and establish a reversal trend.
What kind of trend lines do we have?
Minor & Major Trend lines.
Corrective waves are waves that move with the trend. True or False
False - Against Trend - But doesn’t break trend
Impulse waves are waves that move against the direction of the trend. True or False
False - With Trend
Corrective wave patterns are patterns that reverses from current trend? True or False
True - But does’t break current trend
What is a minor trend line?
Smaller movements which tend to last for very short periods of time
What is a major trend line?
Main trend over a longer period of time
If impulse waves are where the money is what do we do with Impulse waves as far as buying and selling?
Ride the wave meaning buy on the way up, buy more at the bottom of dip, sell or hold on next peak, buy more on the pullback, and sell or hold on the next peak etc.
What do we do with corrective waves as far as buying and selling?
We sell at the top of corrective waves
Impulse waves and corrective waves help to identify the trend. True or False
True
When trendlines are broken does it mean that the trend is automatically broken?
No it can be temporary and continue in the established trend
Uptrends are confirmed when we see?
Three peaks of higher highs and higher lows
Downtrends are confirmed when we see?
Three peaks of lower highs and lower lows
