Understanding Market Zones in Trading
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Questions and Answers

What is the first rule in zone selection according to the text?

  • Liquidity
  • Imbalance
  • Break market structure (correct)
  • Momentum in the BOS

What does the refinement of a POI (Point of Interest) refer to?

  • Identifying the most significant POI across all timeframes
  • Looking for a lower timeframe POI in a higher timeframe (correct)
  • Looking for a higher timeframe POI in a lower timeframe
  • Refining the entry and exit points around a POI

What is the 'Extreme' in the context of zone selection?

  • The zone that is farthest from the protected structure
  • The zone that was created for the choch or the bos
  • The zone that is closest to the protected structure (correct)
  • The zone that is least likely to be tested

What is the purpose of identifying the inducement (IDM)?

<p>To avoid making impulsive trading decisions based on price movements (D)</p> Signup and view all the answers

What is a 'smart money trap' according to the text?

<p>A liquidity zone before a POI that attracts smart money traders (C)</p> Signup and view all the answers

What is the purpose of the 'Decisional' zone in the context of zone selection?

<p>It is the zone that was created for the choch or the bos (D)</p> Signup and view all the answers

Which of the following is NOT mentioned as a rule for zone selection in the text?

<p>Trend direction (B)</p> Signup and view all the answers

Which of the following is the most powerful rule for zone selection?

<p>Break market structure (D)</p> Signup and view all the answers

What is the purpose of identifying the 'protected structure' in the context of zone selection?

<p>To identify the 'Extreme' zone (D)</p> Signup and view all the answers

What is the significance of the 'Inducement' rule in zone selection?

<p>It is used to avoid making impulsive trading decisions based on price movements (B)</p> Signup and view all the answers

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