Technical Analysis Flashcards
One way to help you find support and resistance zones is to?
plot support and resistance on a line chart rather than a candlestick chart.
To draw Forex trend lines properly, all you have to do is?
locate two major tops or bottoms and connect them.
It takes at least two tops or bottoms to?
draw a valid trend line but it takes THREE to confirm a trend line.
draw a parallel line at the same angle of the uptrend or downtrend, we will have created a?
channel
What are the types of channels?
Ascending channel (higher highs and higher lows)
Descending channel (lower highs and lower lows)
Horizontal channel (ranging)
When playing the bounce, we want to tilt the odds in our favor and?
find some sort of confirmation that the support or resistance will hold.
If you’ve been looking to go short, you want to wait for it bounce off?
resistance before entering.
The simplest way to play breakouts is to buy or sell whenever price?
passes convincingly through a support or resistance zone.
Instead of entering right on the break, wait for price to make a “pullback” to the broken support or resistance level and enter?
after the price bounces.
When the market moves up and then pulls back, the highest point reached before it pulls back is?
now resistance.
As the market continues up again, the lowest point reached before it climbs back up is?
now support.
One thing to remember is that horizontal support and resistance levels are?
not exact numbers.
To help you filter out false breakouts, you should?
think of support and resistance more of as “zones” rather than concrete numbers.
One way to help you find support and resistance zones is to?
plot support and resistance on a line chart rather than a candlestick chart.
when price passes through a resistance level, that resistance could potentially become?
support
In their most basic form, an uptrend line is drawn?
along the bottom of easily identifiable support areas (valleys).
In a downtrend, the trend line is drawn along the?
top of easily identifiable resistance areas (peaks).
There are three types of trends?
Uptrend (higher lows)
Downtrend (lower highs)
Sideways trends (ranging)
To create an up (ascending) channel, simply?
draw a parallel line at the same angle as an uptrend line and then move that line to a position where it touches the most recent peak.
To create a down (descending) channel, simply?
draw a parallel line at the same angle as the downtrend line and then move that line to a position where it touches the most recent valley.
