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 most days, which are trading range days, ____________ lines across swing _____ and _____ often serve as barriers that result in failed breakouts and then reversals.

Back 18

Horizontal; highs; lows