Price action quiz · TradeBridge IB

1.Which sequence of swing points describes an uptrend?

Lower highs and lower lowsHigher highs and higher lowsHighs and lows stalling near the same levelsHigher highs and lower lows

2.In an uptrend, which level is usually watched for a break of structure?

The highest high on the chartA round number such as 1.1000The opening price of the weekThe most recent higher low

3.What does the 'volume' shown on most spot forex charts usually measure?

Tick volume: the number of price changes in each candleThe total amount of currency traded worldwideThe number of open positions at your brokerThe value of currency futures contracts outstanding

4.What is a false breakout?

A breakout that happens during the Asian sessionA breakout that later retests the broken level and holdsA move beyond a level that fails and closes back inside the rangeA breakout on a timeframe shorter than one hour

5.A candle has open 1.1000, high 1.1010, low 1.0950 and close 1.1005 (example prices). How long is its lower wick?

5 pips10 pips50 pips60 pips

6.Which feature is typical of an impulsive move rather than a corrective one?

Large candles with little overlap that close near their extremesSmall, overlapping candles with wicks in both directionsMany candles covering a short distanceCloses mostly in the middle of each candle's range

7.You risk 100 USD on EUR/USD with a 25-pip stop, and 1 pip on 1 standard lot is worth 10 USD. What is the position size?

0.25 lots1 lot2.5 lots0.4 lots

8.Where should a price-action stop-loss usually be placed?

At a fixed 10 pips from entry on every tradeJust beyond the swing point that proves the trade idea wrong, with a small bufferExactly on the swing point, with no bufferWherever keeps the position size largest