Welcome to your ACTIVE - DTC: #5 Quiz

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1. Trader A says chart patterns are what we use to establish entry points and profit potential. Trader B says It would be possible to day trade without charts or charting patterns. Who is correct?
2. Trader A says a super strong stock can override a poor daily chart. Trader B says a great daily chart usually can’t override a poor intraday chart or a lack of intra-day volume.  Who is correct?
3. During a Flat Top Breakout Pattern where do you set your stop?
4. During a Bull Flag Breakout, what is an indicator that the pattern may not work?
5. If we see a stock forming a Bull Flag, Flat Top Breakout, or another popular chart pattern, what do we need to ask ourselves?
6. Is the following statement true or false:  Chart patterns are a way of helping us visualize a low risk opportunity to enter a strong stock.  However, chart patterns are only valid on stocks moving up in excess of 5% and experiencing high relative volume.
7. When we are trading breakout patterns, there is something we need to see immediately upon entry, to confirm the trade.  What is it?
8. Active day traders often look for chart patterns on both the 1min and the 5min chart.  What is an example of a time you would NOT use the 1min chart?
9. Trading on the 5min time frame is often considered less risky than the 1min.  However, what is the drawback?
10. In order for a pullback to be worth considering, it must not:
11. If a Bull Flag occurs while the stock is more than 30 cents above the 9ema on the 5min chart, what should you do?
12. During a Bull Flag, what is the correct entry point?

13. In the image below why did the breakout inside the square box fail?

14. When a flag pattern breaks out, what is the first thing we look to do?
15. What is the best way to find bull flag, flat top, or pullback patterns?
16. In the 1234 (ABCD) Pattern below, what is the correct entry point?

17. In a 1234 setup, which of the following breaks or ruins the pattern?
18. Do traditional patterns like Bull Flags, Flat Top Breakouts, and 1234 Setups, work well on large cap stocks? (AAPL, FB, NFLX, TWTR, TSLA)
19. Retail traders with small accounts (less than $100k) typically prefer breakout patterns on stocks under$10 for what reason?
20. Patterns help us find low risk opportunities to enter strong stocks.  However, patterns are not a strategy.  A strategy is your set of rules for how you'll trade patterns, when you'll trade them, what price range, etc.  Is this statement true or false?