20 Questions
What are some common tools to find price patterns?
chart pattern, candlestick patterns, trendlines, price bands, support and resistance levels, Fibonacci retracement levels
In a downtrend, when the security or market goes below all-time lows, why is it difficult to find exact support levels?
Finding exact support levels is not possible in a downtrend when the security or market goes below all-time lows, and the only way is to go with retracement levels.
What is the significance of fundamental analysis in the context of price patterns?
Fundamental analysis, which involves analyzing the underlying factors that move the market, is ignored when using price patterns as a technical strategy.
Why is it important to understand how the security or market behaved in the past when analyzing price action?
Understanding past market behavior helps in predicting future market movements based on repeated price patterns.
What are some major economic news announcements that can have a huge impact on FX trade?
Interest Rate decisions from the central bank, Non-Farm Payroll data, FOMC meet
What is the process followed by a technical analyst or trader to make trading decisions based on price patterns?
They observe past and present market behavior to predict the most likely direction of the security or market.
What is the main focus of using price patterns as a technical strategy?
The main focus is on predicting future market movements based on repeated price patterns of the past.
What are the two scenarios described in the text where it is challenging to find exact support levels?
In an uptrend and in a downtrend when the security or market goes below all-time lows.
What is the significance of observing present market behavior when analyzing price action?
Observing present market behavior helps in predicting future market movements based on repeated price patterns.
Why do technical analysts and traders ignore fundamental analysis when using price patterns as a strategy?
Fundamental analysis, the underlying factor that moves the market, is ignored when using price patterns as a technical strategy.
Match the forex market session with its opening and closing time:
London = 8:00 AM - 4:00 PM GMT New York = 8:00 AM - 5:00 PM EST Sydney = 8:00 AM - 5:00 PM AEDT Asian = 7:00 PM - 4:00 AM GMT
Match the following statements with their corresponding characteristics of the forex market:
Forex market never sleeps = Operates 24 hours and 5 -1/2 days a week Long or short trading = Ability to trade in both buying and selling directions High Leverage = Allows trading with larger positions than the initial investment High Liquidity = Ability to trade with any type of currency
Match the reason for the forex market operating 24 hours a day with the correct explanation:
Global spread of currency exchange services = Governments, corporates, and private individuals requiring currency exchange services are spread around the globe Convenience for traders = Enables traders from different time zones to participate in trading at suitable times Profit maximization = Allows continuous trading without time restrictions Regulatory requirements = Necessitates adherence to varying national and international trading regulations
Match the forex market sessions with their corresponding opening and closing times:
Sydney session = Monday morning opening to afternoon close Tokyo session = Afternoon open to evening close London session = Morning open to afternoon close New York session = Afternoon open to evening close
Match the following statements with their corresponding features of the forex market:
24-hours open market = No need to wait for a specific opening bell Use of Leverage and Margin = Allows trading with more money than available in the account Large and many participants = No single participant can control the market price Rare extreme volatility = Unlikely due to the market's size and participants
Match the following benefits with their explanations in relation to forex trading:
Ability to trade anytime = No need to pay attention to specific trading hours Low margin and high leverage = Allows trading with more money than what is available in your account Bigger returns with less amount = Potential for higher profits relative to initial investment Caution with very-high leverage = Warning about potential risk, especially for beginners
Match the forex market session with its corresponding time zone:
Summer Session 9 (Around April - October) = EDT GMT Winter Session 9 (Around October - April) = EST GMT Sydney = Open 06:00PM - Close 03:00AM Tokyo = Open 07:00PM - Close 04:00AM
Match the forex market session with its corresponding opening and closing times in New York time zone:
Summer Session 9 (Around April - October) = Open 08:00AM - Close 05:00PM Winter Session 9 (Around October - April) = Open 08:00AM - Close 05:00PM Sydney = Open 08:00AM - Close 05:00PM Tokyo = Open 08:00AM - Close 05:00PM
Match the forex market session with its corresponding opening and closing times in London time zone:
Summer Session 9 (Around April - October) = Open 03:00AM - Close 12:00PM Winter Session 9 (Around October - April) = Open 03:00AM - Close 12:00PM Sydney = Open 03:00AM - Close 12:00PM Tokyo = Open 03:00AM - Close 12:00PM
Match the forex market session with its corresponding opening and closing times in Sydney time zone:
Summer Session 9 (Around April - October) = Open 06:00PM - Close 03:00AM Winter Session 9 (Around October - April) = Open 04:00PM - Close 01:00AM Tokyo = Open 06:00PM - Close 03:00AM London = Open 04:00PM - Close 01:00AM
Test your knowledge about economic indicators like GDP growth, industrial production, and the Consumer Price Index (CPI) and understand their impact on currency value and forex trading.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
