Mastering Price Action and Technical Analysis.

Building a Foundation

Introduction to Trading.

4 Topics | 1 Test

Getting Started.

Market Players.

What are Candlesticks?.

Spreads and Pips.

Test: Introduction to Trading.

How to Read Price Movements.

4 Topics | 1 Test

Overview of Technical Analysis

Types of Trading.

Price Action Trading.

Support and Resistance.

Test: How To Read Price Movements.

Order Types and Risk Management Basics.

3 Topics | 1 Test

Money Management – Risk:Reward.

Position Size and Percentage Risk.

Test: Order Types and Risk Management Basics.

Technical Analysis and Price Action

Introduction to Indicators.

5 Topics | 1 Test

Trading Volume.

Moving Averages.

Moving Averages with Price Action.

Bollinger Bands.

Trade Selection with “Filters”.

Test: Introduction to Indicators.

2 Topics | 1 Test

Trading Channels.

Trend Patterns.

Test: Trend Trading.

3 Topics | 1 Test

Support and Resistance = Consolidation.

Trading Ranges with Price Action.

Range Finder – Donchian Channels.

Test: Range Trading.

Reversal Trading.

3 Topics | 1 Test

Double Tops and Bottoms.

Rounding Tops and Bottoms.

Head and Shoulders.

Test: Reversal Trading.

Volatility Trading.

2 Topics | 1 Test

Spotting Volatility: Average True Range.

Test: Volatility Trading.

Keys to Success

Risk Management.

5 Topics | 1 Test

Methods For Closing Trades.

Money Management.

Drawdowns and Persistency.

Price Shocks & Pyramiding.

Margin/Leverage.

Test: Risk Management.

Trading Psychology.

3 Topics | 1 Test

Failure is All Part of The Process.

Controlling Emotions.

Test: Trading Psychology.

Test: How To Read Price Movements.

Mastering Price Action and Technical Analysis. How to Read Price Movements. Test: How To Read Price Movements.

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Question 1 of 12

1. Question
Which of the following methods of making trading decisions can serve traders well in the long run? Pick 2.
- Fundamental Analysis
- Insider Information
- Intuition
- Technical Analysis
Correct

Incorrect
Question 2 of 12

2. Question
Why can technical analysis be profitable? Pick as many or as few as you like.
- Big institutional players cannot hide their footprints since they trade really large size.
- The technical patterns are always the same so they are easy to identify.
- All trading ideas – fundamentally or technically based – must be converted into order flow, and this is reflected in the price action.
- Trading is a game of probabilities and price action data can be used to create probabilistically favorable models to be used.
Correct

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Question 3 of 12

3. Question
Trading is a zero-sum game.
- True
- False
Correct

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Question 4 of 12

4. Question
Which lines on the chart mark the levels of both support and resistance?
- A and B
- A and C
- B and C
- C and D
Correct

Incorrect
Question 5 of 12

5. Question
A strategy which generally buys into resistance is likely to be a profitable one
- True
- False
Correct

Incorrect
Question 6 of 12

6. Question
Horizontal support and resistance is the only one way to identify potential turning prices.
- True
- False
Correct

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Question 7 of 12

7. Question
According to trader Curtis Faith, what are the 3 reasons explaining why support and resistance works?
- Recency bias, Anchoring, Confirmation bias
- Anchoring, Disposition effect, Recency bias
- Recency bias, Disposition effect, Bystander effect
- Representative bias, Anchoring, Disposition effect
Correct

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Question 8 of 12

8. Question
The strength of a support and resistance level depends on which factors? Pick as many or as few as you like.
- The timeframe: the higher the time frame, the 'stronger' the level
- Flipped levels (support levels which become resistance, or resistance levels which become support)
- The number of touches
- The volume of trading in that area
Correct

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Question 9 of 12

9. Question
Prices spend several weeks in a congestion area and then drop below support. Which of the following trading choices should be considered on the following day? Pick as many or as few as you like.
- Sell short if prices fall to a new low, with a stop above yesterday’s high
- Go long if prices rally back into the congestion area, with a stop below yesterday’s low
- Sell short at the opening
- Go long at the opening
Correct

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Hint

Consider what the underlying order flow is: would a risk averse trader buy into selling area or sell into a buying area?
Question 10 of 12

10. Question
The most basic ingredient for successful technical analysis is the:
- Bollinger Bands
- Moving Averages
- The right combinations of strategically chosen indicators.
- Support and resistance areas
Correct

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Question 11 of 12

11. Question
Why is price action important for technical analysis?
- Gives insight into the underlying order flow inside the market and where traders might use other traders' liquidity to enter and exit the market.
- Price is closer to representing the underlying order flow than indicators (since indicators are lagging in nature).
- Candle sticks and candle stick correlations contain a lot of information about price direction.
- All of the above
Correct

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Question 12 of 12

12. Question
Price action analysis works on all time frames and all market.
- True
- False
Correct

Incorrect