Study Guide for Come Into My Trading Room - Forex Factory

98 ANSWERS AND RATING SCALES
Answer 21
1. C, D
2. B, C
3. A
4. E
5. B
6. D
Give yourself a point for each correct answer (half a point if you got one
out of two). Add two points if you got the bonus question right, or a
point for getting it partly right.
Uptrendlines connect bottoms of rallies (line A), and downtrendlines
connect tops of declines (line B). Zones that served as support on the
way down become resistance on the way up, and vice versa (line C).
The behavior of prices at the tops sometimes mirrors that at the nearby
bottoms—a false upside breakout B was followed by a false downward
breakout D. Notice that Figure 3.1 is the chart of the Mexico Index—
technical analysis knows no borders.
At the right edge, neutral to bullish. Prices are rallying from a false
downside breakout, a bullish pattern. The rally is seven days old and
approaching a downtrendline, where prices are likely to run into stiff
resistance—potentially bearish. If prices break through, the next upside
target will be at the level of the early July peak.
Answer 22
1. D
2. A
3. B, C, E
4. F