Terminology: Video 01

Question 1

Define a Bull Pullback

Answer 1

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.

Question 2

What is a channel?

Answer 2

A weaker part of a Bull (Bear) Trend. Eventually evolves into a trading range

Question 3

Is a Bull channel viewed as a bear flag?

Answer 3

Yes, because you get a bear breakout and then transition to a trading range.

Question 4

True or False

A trading Range eventually breaks out. Trend can resume to the upside or downside?

Answer 4

True

Question 5

Define Support

Answer 5

Some point below the current price where a sell-off is likely to pause.

Question 6

Define Resistance

Answer 6

Price above current price. Rally likely to stall or reverse.

Question 7

Define Breakout

Answer 7

A move beyond support or resistance

Question 8

Define Scalp

Answer 8

Quick profit. Usually exit within 1-5 bars.

Question 9

How long is a swing trade held for?

Answer 9

As long as the trend continues

Question 10

Define countertrend trade

Answer 10

Enter trade in opposite direction

Question 11

Define context

Answer 11

Big Picture and All of the bars left of the current bar

Question 12

Would you buy the bottom of a tight bear channel on a bull reversal bar and follow through bar?

Answer 12

No, likely the reversal will fail and the bear reversal will end up a bear flag