Volume one Flashcards
When is the best time to daytrade?
The best time to daytrade is between 9:30 AM and 11:30 AM
When is the max cut off time to stop or slow down daytrading?
11:45 AM
What are the two main reasons why it is best to daytrade at this time?
A higher level of volatilityIs experienced.Also it is easier to get in and out of positions
What is support?
Support is a level in which the price can’t go any lower
What is resistance?
Resistance as a point in which price can’t rise any higher.
What does support represent?
Support represents a floorOr bottom
What does resistance act as?
Resistance acts as a ceiling. Price will reach upHit that ceiling,And bounce back down.
Define a breakdown.
Support is the bottom. Take the word downAnd price will break through it.
What can potentiallyHappen in a breakdown?
The support level that price action breaks throughCan potentially become resistance
What can a breakout potentially become?
A breakout of a resistance levelCan either break out and come back down or potentially turn into supportLevel
Describe the action of a breakout?
A breakout is going upMeaningPrice action is breaking outAnd threw a resistance level
Describe the action of a breakdown?
Take the word downWhich is a bottom or supportAnd price action is breaking downUnder it
What is a pullback?
A pullback occurs in an up trend or a down trend And as one price is moving on One Direction And then pulls back and consolidates. That period of consolidationIs the pullback
When is the best time to make an entry on a pull back?
The best time to make an entry on a pull backIs the first pullback or the second pullback
When is the least ideal time to make an entry?
The least ideal timeTo make an entry Is the third pullback or later.
What is best to remember about pattern trading?
Pattern trading does not work on all stocks
What type of stocks does pattern trading best work on?
Pattern trading best works on stocks with a high relative volume
When is the best points in time to make an entry?
When the stock reaches an Apex point
When is the Apex point in an up trend?
The Apex point is the candlestick that breaks the previous candles high
When is the Apex point in a down trend?
The Apex point and a down trend is the candle stick that breaks the previous candles low
If you are in a down trend making a play where should your loss be?
Your stop loss should be at the low of the previous candle
Your blank time should be used to blank
Premarket time to be used to scan
