Support and Resistance Levels

In a bull market, a ____ level is an area that price has difficulty breaking through to the downside.

• Resistance

• Retracement

• Support

• Consolidation

When price breaks through a resistance level, it could potentially become...

• Price never breaks through resistance

• insignificant

• support

• resistance

How many tops or bottoms does it take to confirm a trend line?

• one

• two

• three

• four

When drawing trend lines, you should...

• Not connect subsequent tops and bottoms

• Never force them to fit the market

• Connect a top and bottom

When price is trading within a channel, what is it doing?

• Price trades within two intersecting trend lines

• Four green candlesticks form

• Price trades within two parallel trend lines

A descending channel is characterized by...

• Higher highs and lower lows

• Same highs and lows

• Higher highs and lows

• Lower highs and lower lows

Generally, the ___ of a channel is considered to be a ____ zone.

• Bottom, Sell

• Top, Buy

• Bottom, Buy

When trading off support and resistance levels, you generally should...

• Place your orders right at the support/resistance level

• Place your buy/sell orders past the support/resistance level

• Wait for price to bounce off the support/resistance level as confirmation that it is holding.

When trading the break of support or resistance levels, the conservative way would be to...

• Buy/sell before price breaks the support/resistance zone

• Buy/sell when price passes convincingly through the support/resistance zone

• Wait for price to retest the broken support/resistance zone then buy/sell