Terminology: Video 01 Flashcards
Define a Bull Pullback
A low of a bar goes below the low of the prior bar. This results in the breakout phase which is very strong, to a channel phase of the trend.
What is a channel?
A weaker part of a Bull (Bear) Trend. Eventually evolves into a trading range
Is a Bull channel viewed as a bear flag?
Yes, because you get a bear breakout and then transition to a trading range.
True of False
A trading Range eventually breaks out. Trend can resume to the upside or downside?
True
Define Support
Some point below the current price where a sell-off is likely to pause.
Define Resistance
Price above current price. Rally likely to stall or reverse.
Define Breakout
A move beyond support or resistance
What is an ABC pullback in a Bull Trend?
Bull Trend, then ABC: A three legged correction. 2 legs down, 1 leg up
What is an ABC Pullback in Bear trend
Two legs up, then a breakout.
Can inside or outside bars be AT the high or low of a bar?
Yes
Define Scalp
Quick profit. Usually exit within 1-5 bars.
How long is a swing trade held for?
As long as the trend continues
Define Tick
Smallest move on stock or futures chart
Define Pip
Smallest move on a Forex chart
Define Point
Group of ticks or pips
Define Lot
Size of trade
Define Handle
Round number of price
Define countertrend trade
Enter trade in opposite direction
Define context
Big Picture and All of the bars left of the current bar
Would you buy the bottom of a tight bear channel on a bull reversal bar and follow through bar?
No, likely the reversal will fail and the bear reversal will end up a bear flag
Define “Always In” the market
Always in a position either long or short. Always in the trend.
Signs of weaking trend
Long wicks on the top (Bull)/ bottom (Bear) of candles, and when it overlaps the breakout point
What is a Higher Low Trend reversal ? ( HL MTR) (and HSB)
Also a head and Shoulders Bottom. Bull breakout of a bear channel. You have a low, then reversal up, then a higher low
