Practice test

There’s always at least one good answer. Look at both images.

Is it true that you could have sold anywhere (with virtually any size that does not prompt a margin call within the next 30 pips) in the orange boxes after the first settled fractal’s print knowing that there was going to be a lower low printed?

– yes or

– yes

What was the reason that made a lower low necessary?

– Inertia. A boat cannot turn on a dime.

– Humphrey Bogart.

Where was the lowest risk entry for a reversal?

– Right after price came back up through the first fractal’s low and printed a positive close (green line).

– At the high that was printed right after the first fractal (blue line).

Pick a route the market may be taking from your carefully chosen entry!

– First E44 hourly, muted counter directional volatility of less than 32 pips (25 would be ideal), proceed to Daily E16, correct close to 100 pips, proceed to E44 daily.

– First E44 hourly, then counter directional move in excess of fluctuation size (32 pips), then continue trending lower.

For all the right answers you scored 3 tubs of sour cream, 2 tons of smashed potato and fake meat Blockwurst approved by carnivores, grrr.

Price is having a hard time with that 1.1175 break-down level. E44 has to come a it lower to finish the rendezvous.