HOMEWORK ALERT – Complete your homework before starting Class 8

Welcome to your ACTIVE - Day Trading Quiz: Chapter 7

1. What does RSI stand for?
2. If a stock sells off more than 10% in 5min what is a possibility?
3. If the airline sector is extremely strong what do you do when you see 4 airline stocks on the reversal scanner?
4. If the entire market is weak and there are lots of stocks on the reversal bottom bounce scanner how do you react?
5. Where do you set your stop on Reversal Trades?
6. When you see a reversal scanner alert what’s the first thing you do?

Chapter 7 - Reversal Trading Strategies: Homework #7

Completing your homework is for your own benefit.  Answers should be in Paragraph form.  If you want to succeed as a trader, you have to show motivation & discipline.

1. What is a min number of consecutive red/green candles before taking a reversal trade?
2. What is an ideal RSI for a reversal trade?
3. What is the correct entry position on the 5min chart for a reversal?  What is your stop?  What is your profit target?
4. What stock scanners will you be using to find reversal trades?
5. How do you trade reversals when an entire sector, or even the entire market is experiencing an extreme? (big sell off, big squeeze)
6. What is the biggest risk with trading reversals?
7. Give an example of why you wouldn’t take a reversal trade.
8. Please provide 3 examples of Reversal trades with entry, stop, exit, etc.