Study Guide for Come Into My Trading Room - Forex Factory
Study Guide for Come Into My Trading Room - Forex Factory
Study Guide for Come Into My Trading Room - Forex Factory
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104 ANSWERS AND RATING SCALES<br />
Answer 29<br />
1. E<br />
2. A<br />
3. C<br />
4. D<br />
5. B<br />
Give yourself a point <strong>for</strong> each correct answer.<br />
The upper channel line reflects the normal limits of market optimism,<br />
the lower line the normal limits of market pessimism. In uptrends, the<br />
envelope hugs rally peaks, while lows may not reach the lower channel<br />
line; in downtrends, the lows touch an envelope, while the highs may<br />
not reach it. The longer the timeframe, the wider the envelope; the<br />
weekly envelope is about twice as wide as the daily in the same market.<br />
A well-drawn envelope contains about 95% of recent market data, while<br />
Bollinger bands expand and contract with market volatility.<br />
Answer 30<br />
1. C, E, F<br />
2. D, G<br />
3. A, H, I, K<br />
4. B, J<br />
Give yourself a point <strong>for</strong> each correct answer (half a point if you missed<br />
one of several occurrences). Add two points if you got the bonus question<br />
right, or a point <strong>for</strong> getting it partly right.<br />
The time to buy is when the trend is up, identified by a rising moving<br />
average. Buying near the rising EMA is a value trade. When prices<br />
hit the upper channel line, they show that optimism is rampant, the<br />
market is overbought, and it is a good time to sell and take profits.<br />
Reverse the procedure in downtrends; when the EMA is down, short
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