1
Q
‘Wave length’
- 3 points
A
- wave length is important for assessing the strength of a price movement
- during an uptrend, long rising trend waves, that aren’t interrupted by correction waves, show strong a strong uptrend
- smaller trend waves or slowing trend waves, show that a trend isn’t strong or losing strength
2
Q
Angle / steepness
- 2 points
A
- shows how fast price is moving up or down
- shows how strong the trend is (if steep, strong trend) (if flat, indecision in market)
3
Q
What does a steep angle tell you?
A
- a steep angle shows you there is strong price movements, but the steeper the angle the riskier the trade
4
Q
What does a healthy trend look like using angle / steepness?
A
- long or increasing trend waves with a steady angle, not to steep and not too flat.
5
Q
How does the angle / steepness signal a possible end of trend?
A
- a trend with waves becoming shorter and losing its steepness indicates a possible end of trend.
6
Q
How do correction waves show you that someone is dominating the market?
A
- a trend with long trend waves and short correction waves shows that the market is being dominated by buyers or sellers
7
Q
How do correction waves show that the opposition are getting stronger?
A
- long correction waves show the opposition are still strong and its becoming more balanced
8
Q
What does it mean if the price can’t break through previous highs?
A
- a strong trend will effortlessly hit higher highs, if the price can’t hit a higher high, this shows the trend may be coming to an end
9
Q
What does it mean if the price immediately reverses after breaking through a high?
A
- if the price can’t continue to move in the trend direction, this is a sign of exhaustion in the market
10
Q
How do you know when an uptrend is over?
- 2 points
A
- if the price doesn’t break through previous highs and the price falls below the previous low, this shows the uptrend is over.
- as soon as the price reaches a new low in an uptrend, it’s over.
Forex
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