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Trading quiz #1

Would you trade this?

Hi everyone, I think it’s time for a little quiz.

Take a look at the chart below, and tell me what (if anything) you would do, and why you’d do it.

Trading quiz #1

Ok, here’s the chart.

Trading quiz example #1

You’ll notice I’ve done everything possible to disguise the source since I’m not looking to provide any trading tips or ‘hinted-at’ recommendations. I will tell you that this is an old historical chart I prepared some time ago.

This is simply an exercise in looking at trading systems and technical analysis to help you learn how to trade profitably on your own without having to follow advice.

The light blue line is a fast EMA, while the green is a slow EMA.

My questions to you all are:

1. Would you take a trade on the last candle (marked with the arrow), and why. Please explain your reasons for entry, and what rules you would follow for exiting.

2. Were there any candles prior to the the one indicated that you would have traded?

When responding, please just say you would go long or short, rather than necessarily describing it in terms of options, cfd’s etc.

Happy Trading

Brian Dibbins
Elite Insiders Group - Trading Systems
Trade Profitably © 2006 - 2007

This entry was posted on Sunday, August 19th, 2007 at 3:16 pm and is filed under BJ Dibbins, Technical Analysis, Trade Profitably, Trading System. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “Trading quiz #1”

  1. josefaddai Says:
    August 19th, 2007 at 6:20 pm

    Hi Brian,

    I don’t know if this is right as i’m a newbie;
    I would go long because

    On the weekly:
    Good healthy white candle breaking out of slow ema (in bullish zone)

    On the daily:

    1. Bullish up day (White Candle Bar)breaking out of the ‘Pullback’ of the overall uptrend line.
    2. also there’s a 123 signal to go long from the bottom of the pull back. Bar also broke out of number 2 of 123 if that makes sense.
    3. Fast EMA cross over slow EMA

    price also finished above pivot point
    are those bars also breaking out of a small flag?

  2. jayluke Says:
    August 22nd, 2007 at 6:21 am

    Hi Brian,
    I agree to the previous post also that the new move broke through two previous resistence(two lower highs) which can add more wait to this new move .
    I would also place my stop just below the red candle where the green arrow is. trail the trade with every pull back (trough) or if it closes below the slow ema.

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