Chapter 6 – SimpleTRADES

What should price do next in this example and why?

1. Price should go up next because it is bullish

2. Price will stay the same because of the large candle before

3. Price should go down because of overextended and the bear candle

4. Price should go down because the trend is bearish

Correct! Wrong!

What are the best reasons why this is a good candle to buy on?

1. Volume spike, Dema going through the candle and small range candle

2. Uptrend, Dema going through the candle and volume spike

3. Breakout after pullback, small range candle and volume spike

4. All of the above

Correct! Wrong!

Why is this the perfect time to buy?

1. Big volume spike

2. Long lower wick bullish candle

3. Trend is changing to uptrend

4. This is actually the time to NOT buy as price is too far from the DEMA

Correct! Wrong!

When you look at this chart, what 2 huge details jump out first?

1. Uptrend and red candle

2. 140 resistance and far above the dema (overextended)

3. Bull candle and trend reversal

4. None of the above

Correct! Wrong!

Why is this a good shorting opportunity?

1. Dema is going through the wick of the candle

2. Price is making lower highs

3. Candle is a bear candle with a longer upper wick

4. All of the above

Correct! Wrong!

Assuming that both candles 1 and 2 are great buy signals, which is better and why?

1. Number 2 is better because of the huge volume spike

2. Number 1 is better because of the smaller range candle

3. Number 2 is better because it is a large range candle

4. Number 1 is better because it is a bull candle

Correct! Wrong!

How would you describe trend in this example?

1. A downtrend now in a sideways choppy market

2. A choppy market possibly starting to turn to an uptrend

3. No trend yet until price breaks out to confirm new uptrend

4. All of the above

Correct! Wrong!

What is the trend in this example and where do you see price going?

1. Downtrend and price will keep dropping

2. Downtrend but price will go up because of 350 support and dema is far above

3. Uptrend and price will rise because of 350 support and dema

4. None of the above

Correct! Wrong!

What do candles 1 and 2 have in common?

1. They are both bull and bear candles

2. They are both far from the dema

3. They both would be great entries

4. All of the above

Correct! Wrong!

Out of the 4 examples shown, which are the best buy signals

1. 1 and 2

2. 3 and 4

3. 1 and 4

4. All tick the boxes for good buy signals

Correct! Wrong!

What is likely to happen in both cases and why?

1. Price will likely rise because it is a bullish uptrend

2. Price will likely drop because they are large range candles and far from the DEMA

3. Price will stay the same because there is strong support

4. None of the above

Correct! Wrong!

Why is this the perfect short on Bitcoin here?

1. Price is changing to downtrend

2. Resistance off of 65k 3 candles prior, bear candle and dema going through upper wick

3. Price has been going up a lot recently

4. The support at 60k

Correct! Wrong!

Why is this the perfect buy?

1. Trend is changing to uptrend from choppy

2. Volume is increasing

3. Price is breaking through 35000

4. Dema going through candle, small range candle and recent support days ago at 30000

Correct! Wrong!

List some reasons why this is a buying opportunity

1. Uptrend and this is the pullback

2. Overextended, bullish lower wicks, higher low from previous candle

3. Volume is increasing and good resistance

4. Strong support at 16000

Correct! Wrong!

You take a short position after the great signal labelled 1. What should you do at the candle 2?

1. You should hold the trade until it looks like it is reversing

2. You should buy now because price will go up soon

3. Exit your short because the candle has a very large range and price will rebound

4. Exit your trade because it looks like it would have made you good money.

Correct! Wrong!

You take a buy position after either of the purple arrow candles. When should you exit the trade?

1. You should exit after the large range candle because price will likely drop after

2. You should exit after enough profit has been made

3. You should exit after you hit resistance

4. None of the above

Correct! Wrong!

Looking back at the trend chapter, what would these 4 points be called?

1. 1. Is higher high, 2 is higher low, 3 is higher high, 4 is Lower high

2. 1. Is higher high, 2 is lower low, 3 is lower low, 4 is higher low

3. 1. Is higher high, 2 is higher low, 3 is higher low, 4 is lower high

4. None of the above

Correct! Wrong!

Knowing that these points 1-4 symbolize the downtrend. What do the numbers show?

1. Lower high, lower low, lower high, lower low

2. Higher low, lower high, lower low, lower high

3. Lower low, lower high, lower low, lower high

4. Lower high, lower low, higher high, higher low

Correct! Wrong!

How would you describe the trend on this chart of Gold?

1. Uptrend

2. Downtrend

3. Sideways/choppy

4. None of the above

Correct! Wrong!

Why will you look for trades like this going forward?

1. Because of dema going through the body

2. Trend is breaking out and candle range is small

3. Volume is increasing

All of the above

Correct! Wrong!

What should price do next in this example and why?

What are the best reasons why this is a good candle to buy on?

Why is this the perfect time to buy?

When you look at this chart, what 2 huge details jump out first?

Why is this a good shorting opportunity?

Assuming that both candles 1 and 2 are great buy signals, which is better and why?

How would you describe trend in this example?

What is the trend in this example and where do you see price going?

What do candles 1 and 2 have in common?

Out of the 4 examples shown, which are the best buy signals

What is likely to happen in both cases and why?

Why is this the perfect short on Bitcoin here?

Why is this the perfect buy?

List some reasons why this is a buying opportunity

You take a short position after the great signal labelled 1. What should you do at the candle 2?

You take a buy position after either of the purple arrow candles. When should you exit the trade?

Looking back at the trend chapter, what would these 4 points be called?

Knowing that these points 1-4 symbolize the downtrend. What do the numbers show?

How would you describe the trend on this chart of Gold?

Why will you look for trades like this going forward?

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