Chart Components

Question 1

What are price waves?

Answer 1

• the price on charts move in an up and down fashion, these movements are called price waves.

Question 2

Explain what price waves look like in an upward trend

Answer 2

• the upward price waves are steeper and longer than the downward correction price waves, this is the only way for price to move upwards

Question 3

Explain what price waves look like in a sideways market

Answer 3

• the upward and downward price waves are equally as strong, until one side starts taking all of the interest and this will cause a breakout

Question 4

What are swing points?

Answer 4

• the points on a chart where the market changes direction

Question 5

What is a swing high?

Answer 5

• a swing high is when price moves up then stops
• it’s where the price movement peaked

Question 6

What is a swing low?

Answer 6

• a swing low is when price moves down and then stops

Question 7

How does an uptrend occur?

Answer 7

• an uptrend can only occur if the price waves form higher highs and higher lows

Question 8

How does a downward trend occur?

Answer 8

• a downtrend can only occur if the price waves form lower lows and lower highs