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19 Cards in this Set
- Front
- Back
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What is a good tool to use to determine relative strength of a market? |
A Simple Moving Average, such as the 50 day Moving Average. |
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WHAT IS a helpful tool, helping you time trade entry? |
A Simple moving average. |
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Why do you want to be buying when the price is close to the moving average? |
If you buy above the moving average line, you have less room for price to rise. Better to go with the trend to find better entry points. |
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How can you better define areas of value,, and better time your entries? |
You guessed it, by using moving averages, such as the 50 day moving average. |
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Which Moving Average is a really good one to determine the long term trend? |
The 200 Moving Average. If the price is above the 200 moving average, look for opportunities to buy. The 200 moving average is a good one to determine whether you should be going long, or short. |
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Which one gets the nod, price action and market structure, or the 200 moving average? |
When push comes to shove,, the 200 MA is a lagging indicator, and price structure gets the nod. |
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When you face a conflict between market structure and the moving average, which one do you go with? |
You should go with market structure. |
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WHAT IS A GOOD SHORT TERM MOVING AVERAGE? |
20 M,A. |
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What is a good Medium Term Moving Average? |
50 to 100 |
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What is a good Long Term Moving Average to use to look at the path of least resistance, otherwise known as The Trend? |
200 Moving Average |
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What are Four Uses of moving Averages? |
1) Identify the strongest market to trade.
2) Better time your entries.
3) Identify the path of least resistance.
4) To ride massive trends.
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Why do you want to trade when the market is closer to the moving average line? |
Because this allows you to capitalize on the historical data in a way that allows you to make a better vertical movement, away from the moving average line . You simply have more distance that you get to go Upward, if you start on the moving average line, and go upwards, Rather than starting on some point above the moving average line. Take advantage of the moving average line and wait. Wait for price to come to you, before you make your trade. |
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What is the Path of Least Resistance otherwise known as? |
The Trend. |
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What Technical Tools should you use, in conjunction with moving average, to make trade decisions? |
1) Price Action 2 ) Momentum Indicators |
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What should you be looking to do if the price is below the 200 moving average line? |
Short The market. |
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What should you be looking to do if the price is above the 200 moving average line? |
Buy |
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What Moving Average Length provides a good indicator of whether to go long or short? |
The 200 Moving Average. |
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How Do You Analyze the Market Structure? |
The most basic form of analysis is to identify higher highs, higher lows, lower highs, and lower lows. Within these four basic structures, you can identify further price patterns, like double tops, etcetera. |
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What’s the Difference Between Price Action and Market Structure? |
Price action is the change of price over time. Market structure is about taking a step back and organizing this price action into a set framework. For example, if the price action is creating higher highs and higher lows, it’s forming a bullish market structure. |
