20 Questions
What is one characteristic of trend according to the text?
Trends often display one-time framing
How can one keep on the right side of the trend based on the text?
By applying a moving average study to the chart
What is a key component of trend strength according to the text?
Volume and volatility
What does good support and resistance show according to the text?
A unique price response
When do trends tend to end according to the text?
When there is a rise in volume and volatility
What is the theory behind the interaction of buyers and sellers at premium and discount prices?
Buyers interact at premium prices and sellers interact at discount prices.
In the context of one time framing, what is true about strong auctions?
They cannot take out the high or low of a previous rotation.
What type of delta response do we want to see in a strong auction?
A delta response that matches the direction of price.
What characterizes a weak auction in terms of net delta per rotation?
It shows a muted delta response.
How do initiative and responsive price actions differ?
Initiative involves aggressive one-directional trade, while responsive involves responding to the initiative being taken.
In the context of trend, what is one characteristic of shallow pullbacks?
They fail to sustain any hold within the previous rotation
How does steeper slope in moving averages relate to trend strength?
It represents a stronger trend
What does exhaustion indicate in the context of trend ending?
Rise in volume and volatility
Why can aggressive entry into the market reduce risk in a trending market?
It prevents others from entering passively
What characterizes good support and resistance according to the text?
High volume and high delta
What is the key principle of breakout trading related to one time framing?
Strong and weak auction process
In the context of net delta per rotation, what characterizes a strong auction?
Aggressive delta response matching the direction of price
What characteristic is exhibited by strong auctions in terms of rotational overlap?
Less rotational overlap
Which principle is associated with the interaction between buyers and sellers at premium and discount prices?
Support and Resistance
What type of price action ends when responsive actors are present?
Initiative price action
Test your knowledge of breakout trading principles with this quiz covering strong weak auction, trend, support and resistance, market context, volume, volatility, price action, liquidity, delta shading, and color lines.
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