Price Action Bar To Bar Ch2

Front 1

Both ___________ and ______ _______ _________ are straight lines that are par­allel to the trend but on opposite sides of the trend, forming a chan­nel that contains the price action.

Back 1

Trendlines; trend channel lines

Front 2

straight lines that are par­allel to the trend but on opposite sides of the trend, forming a chan­nel that contains the price action.

Back 2

trendlines and trend channel lines

Front 3

Trendlines most often set up _____ ______ trades, and trend channel lines are most helpful finding tradable __________.

Back 3

With Trend;

Reversals

Front 4

A __________ is most helpful when looking for entries in the direction of the trend on pullbacks and in the opposite direction after the trendline is broken.

Back 4

Trendline

Front 5

A trendline is most helpful when looking for entries in the direction of the _______ on pullbacks and in the _________ direction after the trendline is broken.

Back 5

Trend;

Opposite

Front 6

Once a trend has been established by a series of trending highs and lows, the most profitable trades are in the direction of the trendline until....

Back 6

The trendline is broken

Front 7

The single most impor­tant point about a trendline break is that....

Back 7

it is the first sign that the market is no longer being controlled by just one side (buyers or sellers) and the chances of further two sided trading is now much greater.

Front 8

After every _________ ______, there will be a new swing point upon which to base a new line.

Back 8

Trendline break

Front 9

The strength of the trendline break provides an indication of the strength of the _____________ traders.

Back 9

Countertrend

Front 10

As a trend progresses, ____________ moves break the trendlines, and usually the breakouts fail, setting up With Trend entries.

Back 10

Countertrend; With Trend

Front 11

Each breakout failure becomes the second point for the creation of a new, longer _________ with a shallower slope.

Back 11

Trendline

Front 12

In actual practice, when you see a possible trendline and you are not certain how far it is from the current bar, ____________ to see if the market has hit it and then _____________________.

Back 12

draw it to see if the market has hit it and then quickly erase the line.

Front 13

When a possible ______ _____ _________ pattern is setting up, a trend chan­nel line drawn across the neckline and dragged to the left shoulder sometimes gives an approximation of where the right shoulder should form

Back 13

Head and shoulders

Front 14

A _______ __________ is a trendline on any time frame that is drawn across from 2 to about 10 bars where most of the bars touch or are close to the trendline, and then one of the bars has a false breakout through the trendline

Back 14

Micro Trendline

Front 15

Even trendlines created using just ____ or ______ consecutive bars in a steep trend can setup _____ _______ entries when there is a small break that immediately reverses

Back 15

Two; three; With Trend

Front 16

Small trendlines in strong trends, even when drawn using adjacent bars, often have failure tests (________ __________) that set up good _______ __________ entries.

Back 16

Failed breakouts;

With Trend

Front 17

When trading, you do not have to actually draw the trendlines on the chart very often because....

Back 17

most are visible without the help of the lines.

Front 18

On ____________ days, horizontal lines should generally only be used to enter on pullbacks, like with the Double Top Bear Flag or a Double Bottom Bull Flag patterns.

Back 18

Trend

Front 19

On trend days, horizontal lines should generally only be used to enter on _________ , like with the ________ _______ ______ Flag or a __________ ________ ______ Flag patterns.

Back 19

Pullbacks;

Double Top Bear;

Double Bottom Bull

Front 20

Most days are not strong trend days, and on these days traders should be looking at all prior ______ ______ and _____ for failed tests and reversal entries.

Back 20

Swing highs; lows

Front 21

________ __________ lines are on the opposite side of the price action from a trendline and have the same general slope.

Back 21

Trend channel

Front 22

In a bull, a __________ is below the lows and a ___________ is above the highs, and both are rising up and to the right.

Back 22

Trendline;

Trend channel line

Front 23

_______________ overshoots are closely related to Wedges and should be viewed and traded as if they are one and the same.

Back 23

Trend channel line

Front 24

Smart traders won't trade Countertrend until either there is _______________ ________________ or there is __________ _____ ___________ ______________

Back 24

a pullback from a strong trendline break;

a reversal from a trend channel line over­ shoot.

Front 25

smart money will keep buying until they drive the price above the _____ ______ ________ ______ , and then they will take profits.

Back 25

bull trend channel line

Front 26

Look at the ________ at key turning points. It's huge. The only logical way that can happen is if institutions are exiting in one direction and enter­ing in the other, and other institutions are taking the opposite side as part of a hedge in another market (stocks, options, bonds, currencies, and so on).

Back 26

Volume

Front 27

Trendlines most often set up ___________ trades, and trend channel lines are most helpful finding tradable ____________.

Back 27

With Trend; reversals

Front 28

On strong trend days, only consider fading swing _______ in bulls and swing ______ in bears if there was first a good ___________ break.

Back 28

highs; lows; Trendline

Front 29

On trend days, do not take Countertrend entries if they are distracting you from the ____________ entries, where you should swing much of your position.

Back 29

With Trend

Front 30

Usually when there is a trend, you can find a ____________ and a _______ _________ _______ that contain it.

Back 30

Trendline; trend channel line

Front 31

Most trend channel line overshoots __________ back into the channel but sometimes one will continue and this results in a _________ trend.

Back 31

Reverse; steeper

Front 32

Since most trendline and trend channel line breakouts ______ , entering on the breakouts is a losing strategy.

Back 32

Fail

Front 33

Since most breakouts fail, it is far more profitable to look to enter on the _________ ________, but if the breakout extends far, then you should wait for a ________ and then enter in the direction of the breakout

Back 33

Breakout failure; pullback