Triggers

Question 1

Each trigger is an ______ point in which bears or bulls take control over the price action

Answer 1

Emotional

Question 2

1 minute trigger, not as _______

Answer 2

Meaningful

Question 3

What triggers are meaningful?

Answer 3

5min, hourly

Question 4

1 minute trigger has the smallest ______

Answer 4

Line

Question 5

5 minute trigger has a _______ line

Answer 5

Staggered

Question 6

1 minute trigger line moves every

Answer 6

1 minute

Question 7

5 minute trigger moves every

Answer 7

5 minutes

Question 8

Hourly trigger shifts every

Answer 8

Hour

Question 9

5 minute trigger is an ______ battle ground

Answer 9

Emotional

Question 10

What does a “Trigger” represent in trading?

Answer 10

A trigger represents an emotional point in which bears or bulls take control over price action.

Question 11

What does “Velocity” teach in terms of price movement?

Answer 11

Velocity teaches that “price cannot REMAIN moving in a certain direction if velocity does NOT support it.”

Question 12

What is the significance of a “Bear-plane”?

Answer 12

A bear-plane occurs when there’s trigger rejection

Question 13

Describe the importance of the “5-minute” trigger timeframe.

Answer 13

It shifts every 5 minutes and is considered an EMOTIONAL BATTLEGROUND, where prices cross above or below.

Question 14

How often does the “Hourly” trigger shift?

Answer 14

The hourly trigger shifts every hour.

Question 15

How would you describe the trading strategy based on risk to reward?

Answer 15

It is extremely minimal risk to reward.

Question 16

If you’re going long, when is it recommended NOT to remain long? As a trigger

Answer 16

Once the price closes below a trigger.

Question 17

If you’re shorting, when should you consider exiting your position? Triggers

Answer 17

Once the price closes above the 5-minute trigger.

Question 18

Why is it important to wait for candle closes in trading?

Answer 18

To avoid FAKE OUTS to the upside or downside.

Question 19

Give an example of what you should do if you’re long and the price closes below the 5-minute trigger.

Answer 19

You should consider exiting your long position to minimize risk.

Question 20

If you’re short and witness a FAKE OUT to the upside, what might’ve prevented you from making a hasty decision?

Answer 20

Waiting for the candle to close would help in determining if it’s a genuine movement or a fake out.

Question 21

What emotion does the “5-minute” trigger timeframe evoke in trading?

Answer 21

It’s an emotional battleground, indicating high tension and decision-making moments.

Question 22

Provide an example strategy based on the velocity teaching.

Answer 22

If a stock is rising rapidly but the velocity doesn’t support its movement, it might be wise to anticipate a reversal or slowdown in the upward trend.

Question 23

According to the provided text, how does velocity influence the price direction?

Answer 23

For the price to continue in a certain direction, velocity must make new highs (or new lows) corresponding with each new price high (or low).

Question 24

How is velocity simplified in terms of a price moving HIGHER?

Answer 24

For the price to keep moving HIGHER, velocity HAS to keep making new HIGHS.

Question 25

How is velocity simplified concerning a price moving LOWER?

Answer 25

For the price to keep moving LOWER, velocity HAS to keep making new LOWS.

Question 26

What can be deduced if the price is moving higher but velocity isn’t?

Answer 26

The move is FALSE and is likely running on fumes, indicating it might not sustain.

Question 27

Use the car analogy to explain the relationship between price and velocity.

Answer 27

Imagine driving a car and taking your foot off the gas. Even though the car continues moving, it will eventually stop if you don’t press the gas again. Similarly, if bulls don’t increase velocity, a rally will inevitably end.

Question 28

In the context of the analogy, what does “putting the foot on the gas” symbolize?

Answer 28

It symbolizes increasing velocity.

Question 29

What action should you take based on the “move extreme print”?

Answer 29

You should look for THREE new highs after velocity makes its highest high.

Question 30

If velocity does not support the direction of the price movement, what can it indicate about the market trend?

Answer 30

The trend may be deceptive and could potentially reverse or stall soon.

Question 31

What happens to a rally if bulls never increase velocity?

Answer 31

The rally will inevitably come to an end.

Question 32

Why is it significant to watch velocity in relation to price highs and lows?

Answer 32

Because it indicates the strength and sustainability of a price move.

Question 33

How does velocity help in determining genuine price moves versus false ones?

Answer 33

If price moves in a direction (higher or lower) without the corresponding change in velocity (new highs or lows), then the price move can be considered false.

Question 34

What’s the consequence of a rally running on “fumes”?

Answer 34

The rally will not sustain and will eventually come to an end.

Question 35

How does the car analogy relate to the concept of momentum in trading?

Answer 35

Just as a car needs continuous gas (momentum) to move forward, a price trend needs consistent velocity (momentum) to sustain its direction.

Question 36

If you observe the velocity making its highest high, what should be your next step in the strategy?

Answer 36

Look for three subsequent new highs in the price.

Question 37

Why is it important for traders to understand the relationship between price and velocity?

Answer 37

Understanding this relationship helps traders validate the strength of price movements and potentially avoid false signals.

Question 38

What is meant by “bearish divergence” in the context provided?

Answer 38

When the price makes THREE new highs without velocity breaking above the most extreme print (red line).

Question 39

How many bearish divergences are required to anticipate a price reversal?

Answer 39

Three bearish divergences.

Question 40

How does the price typically behave after the third bearish divergence?

Answer 40

It usually makes a reversal.

Question 41

How does the relationship between price making new highs and velocity not making new highs affect the rally?

Answer 41

This relationship indicates that the rally might be deceptive or weak, and one should be suspicious of it.

Question 42

How does the behavior of the price contrast with the behavior of the velocity during a bearish divergence?

Answer 42

Price keeps making new highs, whereas velocity does not exceed its most extreme print, and might even trend downward.

Question 43

If you notice in a real-time trading scenario that the price is consistently making new highs but velocity is not following suit, how would you interpret this behavior?

Answer 43

This would be interpreted as a potential bearish divergence, indicating the rally might be losing steam and a reversal could be imminent.

Question 44

imagine you’re analyzing a stock’s chart, and you spot two bearish divergences in a row. What should you anticipate if a third bearish divergence appears?

Answer 44

If a third bearish divergence appears, one should anticipate a potential price reversal.

Question 45

In a trading scenario, if you observe a bearish divergence, what might be a practical action to consider?

Answer 45

One might consider preparing to exit a long position or even initiating a short position, anticipating a potential price drop.

Question 46

How does the price usually react after a bearish divergence on the 5-minute velocity chart?

Answer 46

The price will typically re-visit the 5-minute trigger.

Question 47

If the price drifts sideways after the third bearish divergence and then collides with the 5-minute trigger, what usually happens?

Answer 47

99% of the time, the price will bounce and continue higher.

Question 48

If you’re in a long position and notice that while the price is consistently making new highs, the velocity is showing a downward trend, what might you anticipate?

Answer 48

This is indicative of a bearish divergence, suggesting that the upward movement might lose momentum soon.

Question 49

In a real trading situation, if you see that the price is making new highs but the velocity never exceeds its most extreme print, what strategy might you adopt?

Answer 49

One might consider this as a sign that the rally is losing steam and might prepare for a potential reversal in the price.

Question 50

How does the behavior of velocity during a bearish divergence compare to the car analogy?

Answer 50

just as taking the foot off the gas in a car results in it eventually slowing down, a decreasing velocity while the price rises indicates that the rally is losing momentum.

Question 51

If the price revisits the 5-minute trigger after a bearish divergence, but just drifts sideways and collides with the 5-minute trigger, what’s the typical outcome?

Answer 51

The price will usually bounce and continue moving higher.

Question 52

In the context of the provided data, what does it signify when the velocity is trending DOWN while the price is going UP?

Answer 52

It signifies that the move or rally is losing steam or momentum.

Question 53

What does the positive hourly velocity indicate about the hourly trigger?

Answer 53

When the hourly velocity is positive, it indicates that we can expect the hourly trigger to provide support.

Question 54

Define the term “emotional capitulation level” in relation to the Hourly Trigger.

Answer 54

The Hourly Trigger acts as an emotional capitulation level, meaning there’s always one level that needs to hold for bulls to continue.

Question 55

How many velocity signals do you need to confirm a bearish trend in the given example?

Answer 55

One, specifically the 1-minute velocity making a new extreme low.

Question 56

What is the behavior of price in relation to the hourly trigger when the hourly velocity isn’t strong?

Answer 56

The price will bounce off the hourly trigger.

Question 57

How does the price behave when 1-minute velocity doesn’t make a new low after it hits its most extreme low?

Answer 57

This is inherently bullish.

Question 58

How do the price and the 5-minute velocity relate when the price is trading closer to the hourly trigger?

Answer 58

As the price is pushing lower, the 5-minute velocity is pushing up (repairing), diverging bullishly.

Question 59

When price makes lower lows and is heading toward the hourly trigger, what contrast is observed with the 5-minute velocity?

Answer 59

The 5-minute velocity is increasing while the price is making lower lows.

Question 60

In a live trading scenario, if you observe the price dipping below the hourly trigger, what strategy would you consider?

Answer 60

One strategy would be to scale into longs when the price dips below the hourly trigger. Another strategy would be to go long after the first one-minute candle closes back above the hourly trigger.

Question 61

If the 1-minute trigger approaches the 5-minute trigger but doesn’t cross it, what potential market behavior might you expect?

Answer 61

This is referred to as a “bear-plane”, indicating that bears are defending the level, and the price might reject off the 5-minute trigger.

Question 62

When considering going long after the price moves over the 5-minute trigger, what other factor should you ensure before making the decision?

Answer 62

Ensure that the 1-minute trigger is also crossing over.

Question 63

What is meant by a “Bear-plane” in the provided context?

Answer 63

It’s when the 1-minute trigger approaches the 5-minute trigger but doesn’t cross it, indicating bears are defending the level.

Question 64

If the price breaks over the 5-minute trigger, why is it advised not to rush into longs?

Answer 64

Because if the 1-minute trigger does not cross over the 5-minute trigger, it can bear-plane off the 5-minute trigger, and bears might bring the price right back down.

Question 65

In the context of “Perfect Bullish Trigger Orientation”, how should the triggers be aligned?

Answer 65

1-minute trigger over the 5-minute trigger which is over the Hourly trigger.

Question 66

You entered a trade on a trigger cross. If you’re trading 0dte, what might be your next step?

Answer 66

Trim or take profits on the first significant move up or down.

Question 67

What could be a potential stop-loss strategy after entering a trade on the trigger cross?

Answer 67

Setting a stop-loss when a candle closes below the 5-minute trigger.

Question 68

How does the 5-minute velocity behave when the price makes higher highs?

Answer 68

The 5-minute velocity also makes higher highs.

Question 69

How do the dips in price relate to the 5-minute velocity’s behavior?

Answer 69

When the price dips, if the 5-minute velocity is repairing (increasing), it indicates the dips are being bought.

Question 70

How might you interpret a situation where the price is making lower lows but the 5-minute velocity is increasing?

Answer 70

This would suggest that while bears are pushing the price down, bulls are stepping in and buying the dips.

Question 71

Compare the behavior of the price and the 5-minute velocity when bears are truly in control.

Answer 71

If bears were truly in control, as the price goes down, the 5-minute velocity would also be getting worse and might follow the red line down.

Question 72

What does it indicate when the 5-minute velocity never exceeds its most extreme print?

Answer 72

It indicates a bullish scenario.

Question 73

Given a scenario where the price is nearing the hourly trigger, if the 5-minute velocity is seen to be repairing or increasing, how might you interpret this behavior?

Answer 73

Bulls are likely buying the dips as the price approaches the hourly trigger.

Question 74

In practical terms, what does it mean when the price revisits the hourly trigger and the 5-minute velocity is diverging bullishly or increasing?

Answer 74

It means that the dips in price are being bought, indicating bullish momentum.

Question 75

When price makes higher highs, what concurrent behavior should you expect from the 5-minute velocity?

Answer 75

The 5-minute velocity should also make higher highs.

Question 76

If you observe a bear plane event, where the 1-minute trigger approaches the 5-minute trigger but doesn’t cross, how should you adjust your trading strategy?

Answer 76

It would be advisable to remain cautious and not rush into long positions, as the bear plane indicates bearish resistance.

Question 77

If you missed the first opportunity to go long, under what circumstances should you avoid rushing into the trade?

Answer 77

If the price just goes over the 5-minute trigger, you should ensure that the 1-minute trigger is also crossing before making a decision.

Question 78

How might you interpret the situation where the price dips below the hourly trigger but the 1-minute candle doesn’t close back above it?

Answer 78

It suggests that the hourly trigger did not provide the expected support and caution is needed before taking a long position.

Question 79

How does the behavior of the 1-minute velocity relate to the price when it makes its most extreme low?

Answer 79

If the price makes a new low but the 1-minute velocity does not make a new low, this is seen as inherently bullish.

Question 80

Given that you entered a trade on a trigger cross and are trading 0dte, under what circumstances might you consider taking profits?

Answer 80

Consider taking profits on the first significant move up or down.

Question 81

Compare the price behavior and the 1-minute trigger behavior in the context of a bear plane.

Answer 81

During a bear plane, the price might break over the 5-minute trigger, but the 1-minute trigger does not cross over the 5-minute trigger, indicating a potential bearish reversal.

Question 82

If you observe that the price made higher highs, but the 5-minute velocity did not make corresponding higher highs, how might you interpret this scenario?

Answer 82

This could indicate bearish divergence, suggesting potential weakness in the upward price movement and caution might be needed.

Question 83

When the velocity appears healthy and there’s a dip below the hourly trigger, how might this scenario be interpreted?

Answer 83

This would be seen as a FALSE breakdown and might present a buy-the-dip opportunity for an “airplane” setup.

Question 84

Define the “Airplane Set Up” in the given context.

Answer 84

The “Airplane Set Up” refers to the 1-minute trigger coming down to the 5-minute trigger and then bouncing off, reminiscent of a trampoline effect.

Question 85

Which trigger alignment is indicated as the “Most Bullish Trigger Setup”?

Answer 85

The 1-minute trigger above the 5-minute trigger, which is above the Hourly trigger.

Question 86

Given the information on various trigger setups, how might you interpret the bullishness of an alignment where the Hourly trigger is above the Daily trigger, which is above the Weekly trigger?

Answer 86

It would be seen as a Bullish Trigger Setup, indicating strong bullish momentum across multiple time frames.

Question 87

How does the “Airplane Set Up” relate to the concept of a trampoline in the given context?

Answer 87

Just like a trampoline provides a bounce when pressure is applied, the “Airplane Set Up” sees the 1-minute trigger approaching the 5-minute trigger and then bouncing off, signaling a potential bullish reversal.

Question 88

In the event of a healthy velocity and a dip below the hourly trigger, what trading opportunity might present itself?

Answer 88

An “airplane” setup or a buy-the-dip opportunity might present itself.

Question 89

Why is it crucial for traders to develop a strategy that is in alignment with their individual trading parameters, such as style, risk tolerance, and risk management?

Answer 89

Because markets and trading scenarios are diverse, and what works for one trader might not work for another. Tailoring strategies ensures consistency, comfort, and a higher probability of success.

Question 90

How might you determine if a breakdown below a trigger is false or genuine in a live trading scenario?

Answer 90

By assessing the health of the velocity. If the velocity looks healthy, it’s likely a FALSE breakdown.

Question 91

When you observe the 1-minute trigger approaching but not crossing the 5-minute trigger and then bouncing off, what specific setup might you be witnessing?

Answer 91

You would be witnessing the “Airplane Set Up”.

Question 92

If you want to capitalize on a bullish momentum, which trigger orientation should you be looking for across longer time frames?

Answer 92

You should look for the Hourly trigger above the Daily trigger, which should be above the Weekly trigger.

Question 93

If the 1-minute trigger, 5-minute trigger, and Hourly trigger are all aligned in a bullish orientation, but the price experiences a sharp dip, what might be a likely trading strategy based on the given information?

Answer 93

Given a healthy velocity, traders might look for a buy-the-dip opportunity, anticipating an “airplane” setup.

Question 94

In terms of bullishness, how does the “Most Bullish Trigger Setup” compare to the Bullish Trigger Setup involving the Hourly, Daily, and Weekly triggers?

Answer 94

Both setups indicate strong bullish momentum, but the latter gives a broader, longer-term perspective, encompassing weekly data.

Question 95

In the given context, what does it mean when a breakdown is termed as “FALSE”?

Answer 95

A “FALSE” breakdown means that despite the price dipping below a certain trigger, the overall trend remains bullish, especially if the velocity is healthy, indicating potential for a reversal or bounce-back.

Question 96

Question: What is the significance of the “velocity” indicator in the trading strategy described?

Answer 96

Answer: The “velocity” indicator measures market volatility or momentum and provides guidance on when to buy or sell based on the prevailing market conditions.