Lesson 2

[Trader Question]

Lesson 2 Section 4


Screen 33: I see a (c) 5/1 dn closed.

Your answer is (h) 5/3 closed. Please explain.

R.S.

[pldot]

===It is a 5/3 closed because point x is below the close of the previous bar.
If it were a 5/1d closed, point x would have to occur above the close of the prior bar.

[Trader Question]

Screen 42: I see a 5/3 up but the extension throws me.

Your answer is (j) extended 5/2dn. Please explain

R.S.

[pldot]

====There is no 5/3 up drawn on the chart. The long yellow line is the 5/2 down. If you extend it to the fourth bar and use that point as a level to refer back tot he third bar, that is the point ofthe "5/2 dn extended" line.