Study Guide for Come Into My Trading Room - Forex Factory

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ANSWERS 169 Chart A2-b low. In area B, both MACD-Histogram and MACD-lines are rising, confirming the strength of the bulls. At the right edge of the chart, in area C, the fast EMA is already rising, a bullish sign. The slow EMA is still flat, with prices in the value area between the two EMAs. Entry Ratings WEEKLY CHART A—Bullish divergence of MACD-Histogram: 1 point B—Bullish divergence of MACD-lines: 1 point C—Price below the EMA, in the undervalued zone: 1 point DAILY CHART A—Bullish divergence of Force Index: 1 point B—Rising MACD-Histogram and MACD-lines: 1 point C—Rising 13-day EMA, price in the value zone between fast and slow EMAs: 1 point DECISION Go long SUNW, with a stop below the month’s low, and observe money management rules: 3 points. PASS POINT 6 A B C
170 CASE STUDIES Trade 2: Sun Microsystems SUNW—Exit Answer Chart A2-c entry long A B C D As a rule, it pays to bracket the long moving average with an envelope or a channel and use its walls as guidelines for taking profits. One of the few proven behaviors of the market is its tendency to oscillate above and below value. If we buy near the moving average, near value, then our goal is to sell when the stock or commodity becomes overvalued, near the upper channel line. The first selling opportunity in SUNW comes in area A, after the stock spends more than a week going nowhere, straddling its moving average. Do we want to give the trade more time to work out, or close it and look for another? If you trade a small account, it is important to free up your capital. Even in a larger account, a stock that is going nowhere ties up more than capital. It competes for the trader’s attention, taking his mind off other, more promising, trades, almost like a sick child tends to get the lion’s share of attention in the family. If we continue to hold, SUNW presents a fantastic selling opportunity in area B. Prices speed up to the upside, puncture the upper channel line with an unusually tall bar, only to weaken near the close and end the day within the channel. Our goal is to sell above value, and this
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STUDY GUIDE FOR COME INTO MY TRADIN
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BOOKS BY DR. ALEXANDER ELDER Tradin
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Copyright © 2002 by Dr. Alexander
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vi CONTENTS Part Two Answers and Ra
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HOW THIS BOOK IS ORGANIZED The firs
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QUESTIONS P A R T O N E
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8 QUESTIONS Questions Trial 1 Trial
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10 QUESTIONS Question 4—Stocks, O
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12 QUESTIONS Question 8—Types of
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14 QUESTIONS Questions 9 10 11 12 1
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16 QUESTIONS Question 12—Alcoholi
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18 QUESTIONS Question 16—Discipli
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BASIC CHARTING T H R E E Trading wi
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BASIC CHARTING 23 Question 20—A B
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BASIC CHARTING 25 Question 22—Bas
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F O U R INDICATORS— FIVE BULLETS
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INDICATORS—FIVE BULLETS TO A CLIP
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TRADING F I V E Beginning traders t
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TRADING 41 Question 41—System Tes
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TRADING 43 A. Trend-following B. Os
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TRADING 45 Question 47—Taking Pro
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48 QUESTIONS Questions 48 49 50 51
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50 QUESTIONS Question 51—Opening
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52 QUESTIONS Question 53—The Dail
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56 QUESTIONS Question 56—The Impu
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58 QUESTIONS Question 59—Exits Fi
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60 QUESTIONS Question 62—Trading
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62 QUESTIONS Question 66—Options
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66 QUESTIONS Question 71—The 2% R
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68 QUESTIONS Question 77—The 6% R
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N I N E THE ORGANIZED TRADER If you
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THE ORGANIZED TRADER 73 Question 83
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O N E FINANCIAL TRADING FOR BABES I
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FINANCIAL TRADING FOR BABES IN THE
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FINANCIAL TRADING FOR BABES IN THE
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92 ANSWERS AND RATING SCALES ings w
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94 ANSWERS AND RATING SCALES ten re
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BASIC CHARTING Answer 19 T H R E E
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BASIC CHARTING 99 Give yourself a p
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F O U R INDICATORS— FIVE BULLETS
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TRADING Answer 40 F I V E D. 1, 2,
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TRADING 113 Answer 44 D. 1, 2, 3, a
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DAY-TRADING Answer 48 S I X D. 1, 2
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DAY-TRADING 117 Give yourself a poi
Page 128 and 129: ADVANCED CONCEPTS Answer 54 1. E 2.
Page 130 and 131: ADVANCED CONCEPTS 121 At the right
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Page 134 and 135: ADVANCED CONCEPTS 125 Give yourself
Page 136 and 137: MONEY MANAGEMENT Answer 68 E I G H
Page 138 and 139: MONEY MANAGEMENT 129 staring at a l
Page 140 and 141: MONEY MANAGEMENT 131 Six precent of
Page 142 and 143: N I N E THE ORGANIZED TRADER Answer
Page 144 and 145: THE ORGANIZED TRADER 135 daily, and
Page 146 and 147: THE ORGANIZED TRADER 137 Answer 93
Page 148 and 149: THE ORGANIZED TRADER 139 Answer 98
Page 150: LET’S TRADE: S E C T I O N CASE S
Page 153 and 154: 144 CASE STUDIES disciplined and ga
Page 155 and 156: 146 CASE STUDIES Technical analysis
Page 157 and 158: 148 CASE STUDIES Trade 1: Oracle Co
Page 159 and 160: 150 CASE STUDIES Trade 2: Sun Micro
Page 161 and 162: 152 CASE STUDIES Trade 3: Kroll Inc
Page 163 and 164: 154 CASE STUDIES Trade 4: Imclone S
Page 165 and 166: 156 CASE STUDIES Trade 5: Wheat—E
Page 167 and 168: 158 CASE STUDIES Trade 6: Vimpel Co
Page 169 and 170: 160 CASE STUDIES Trade 7: Internati
Page 171 and 172: 162 CASE STUDIES Trade 8: Biovail C
Page 177: 168 CASE STUDIES Trade 2: Sun Micro
Page 206 and 207: THE ROAD AHEAD You can learn to tra
Page 208: SOURCES Appel, Gerald. Day-Trading
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