Technical Analysis

Question 1

One way to help you find support and resistance zones is to?

Answer 1

plot support and resistance on a line chart rather than a candlestick chart.

Question 2

To draw Forex trend lines properly, all you have to do is?

Answer 2

locate two major tops or bottoms and connect them.

Question 3

It takes at least two tops or bottoms to?

Answer 3

draw a valid trend line but it takes THREE to confirm a trend line.

Question 4

draw a parallel line at the same angle of the uptrend or downtrend, we will have created a?

Answer 4

channel

Question 5

What are the types of channels?

Answer 5

Ascending channel (higher highs and higher lows)

Descending channel (lower highs and lower lows)

Horizontal channel (ranging)

Question 7

When playing the bounce, we want to tilt the odds in our favor and?

Answer 7

find some sort of confirmation that the support or resistance will hold.

Question 8

If you’ve been looking to go short, you want to wait for it bounce off?

Answer 8

resistance before entering.

Question 9

The simplest way to play breakouts is to buy or sell whenever price?

Answer 9

passes convincingly through a support or resistance zone.

Question 10

Instead of entering right on the break, wait for price to make a “pullback” to the broken support or resistance level and enter?

Answer 10

after the price bounces.

Question 11

When the market moves up and then pulls back, the highest point reached before it pulls back is?

Answer 11

now resistance.

Question 12

As the market continues up again, the lowest point reached before it climbs back up is?

Answer 12

now support.

Question 13

One thing to remember is that horizontal support and resistance levels are?

Answer 13

not exact numbers.

Question 14

To help you filter out false breakouts, you should?

Answer 14

think of support and resistance more of as “zones” rather than concrete numbers.

Question 15

One way to help you find support and resistance zones is to?

Answer 15

plot support and resistance on a line chart rather than a candlestick chart.

Question 16

when price passes through a resistance level, that resistance could potentially become?

Answer 16

support

Question 17

In their most basic form, an uptrend line is drawn?

Answer 17

along the bottom of easily identifiable support areas (valleys).

Question 18

In a downtrend, the trend line is drawn along the?

Answer 18

top of easily identifiable resistance areas (peaks).

Question 19

There are three types of trends?

Answer 19

Uptrend (higher lows)

Downtrend (lower highs)

Sideways trends (ranging)

Question 20

To create an up (ascending) channel, simply?

Answer 20

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.

Question 21

To create a down (descending) channel, simply?

Answer 21

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.