The flashcards below were created by user WaverTate on FreezingBlue Flashcards.

1. [3]  When a wave sequence reaches  ______   ______   ______, set TAF trading mind. If not, just endure.
preceding swing start
2. [3]  When wave 2 has retraced to (a)____ of wave 1, enter the market. Put in place a stoploss order at just below (b)____.
• (a) 61.8% (not 38.2%)
• (b) Point 0

** 3rd wave are generally the most powerful phase in any five wave sequence
3. [3]  After stop-loss order is taken, sell ___ units.
Units that are twice as ones for 3 wave trading

** Even a relatively small movement falling below Point 0 should recover any loss incurred on 3rd-wave trading.
4. [3] The most critical point at 3rd wave is located at ____, the level where the distance from wave 2 end equals wave 1.
Point Q
5. [3] If the market falters around (Q), then drops possibly to overlap (1)____ or (2)____.
• (1) wave i of wave 3
• (2) wave 1 end
6. [3A] When the price has exceeded Point (Q), at the level (1)____ of the length of wave 1, some traders enter the market. Call this (2)_____.

• (1) 100%
7. [3] While the price reach Point Q, you have got to (1) ___ ___ ___ carefully if wave 3 will expand and be (2) ___ times as long as wave 1.
• (1) watch price action
• (2) 1.62
8. [3A] If wave 3 extends, as is the case 60 percent, wave 3 is likely to be ___ times the LENGTH of wave 1 or even longer.
• 2.62
• ** Clearly, it is desirable to be very aggressive at this trading.
9. [3] All the trades before and after the ______ are mere trading exercises. These two trades are what it is all about.

10. [3] When four minor waves take shape from wave 2, project probable end of wave 3 by using ____ to calculate the end-point of wave v of wave 3.
Fifth Measurement Method 1 (FMM1)
11. [3A] Measure the distance traveled by wave 1, multiply it by (1)___ and add it to the end of wave 2. This projection is called the (2)____.
• (1) 1.618
• (2) Fifth Measurement Method 2 (FMM2)
12. [5] After wave 4 has retraced (1)___ or (2)___ percent of wave 3, enter the market.

• (1) 38.1
• (2) 50
13. [5] Trade __ units on wave 5 if wave 3 is 1.618 times as long as, or longer than wave 1
3
14. [5] Trade __ units on wave 5 if wave 3 is less than 1.62 times the length of w1.
• 5
• ** But don't get so aggressive on wave5 in case of failure. Cautious of contrary trading
15. [5] If wave 3 was longer than wave 1, by a ratio of 1.618 or higher, wave 5 is not likely to ____ or to be normal.
extend

16. [5] If wave 3 had been extraordinary strong, and had gained ground very quickly, wave 5 has higher chances of being same as (1)____ or being (2)_____.
• (1) wave1
• (2) failure
• ** Therefore, being too optimistic on wave 5 is not recommended.

17. [5] The wave that would be labeled as wave 5 could be actually _____ of an extending wave 3. Taking positions aggressively at this phase is reasonable and desirable.
wave iii
18. [5] The ideal stop-loss order for 5th wave trading should be placed just BELOW the level of ____ peak.
wave1
19. [5] If the correction which will be labeled as ____ drops below the peak of wave 1, the premise of a five-wave sequence to Point T is wrong.
wave4
20. [5] The 3rd wave move should be more appropriately classified as ____ when the wave, which could be wave 4, overlaps the top of wave 1.
zigzag correction (C)
21. [5] Any retracement (that could have been wave 4, moving beyond/below top of w1) of correction is part of  "a large-degree trend" which should move strongly. ____ ____ trade can be very aggressive on an extensive move.
22. [5] If the stop-loss level (1) (___ __ ___) for 5th wave trading is hit, trade up to (2) ___ units, depending on the net position in 3rd wave trading
• (1) top of w1
• (2) 10

** Stop trade should be made for a short time and length.
23. [5] If wave 3 was extended (i.e. it is at least 1.618 times as long as wave 1), and wave 4 could be (1)___% retracement or less relative to wave 3, then a stop-loss order may be placed at the level just below ___% of wave 3.
• (1) 50
• (2) 61.8

** This stop-loss level will only be effective if the pattern of wave 4 forms sideway correction patterns after w3 extension.
24. [5] If a correction on wave 4 starts with (1)____ pattern, the likely stop-loss level is (2)___ percent.
• (1) sideway
• (2) 61.8%

** Also bear in mind Principle of  Alternation with Wave 2.
25. [5] If the corrective waves from wave 3 top can be made up as a three rather than a five, _____ becomes a critical level for any rally to new peaks.
• Point Q (38.2-50% level of wave3)
• Wave 1 top
26. [5] After the price moves beyond Critical ____  (61.8% level of w4), the probability of further declines diminishes to a negligible degree.
Point X
27. [5] On a price move after wave 4, (1)_____, (2)_____ and (3)____ are three critical levels.
• (1) Point X
• (2) w3 top
• (3) w1 top
28. [5] If the market has gone as high as (1)_____ of wave 5, and subsequently declined to the level of (2)_____, sell all positions and stand aside.
• (1) wave iii
• (2) Point Y(wave3 top)
29. [5] Project the probable ending point of wave 5 by internal and external wave relationships. The peak of wave v of wave 5 may be calculated by using ____.
FMM
30. [5] What has been labeled as wave 5 peak may actually be just _____ of a extended wave 3.
wave iii
31. [5] At a certain point, paper-profits definitely have to turned into _____ as a profit.
hard cash
32. [A] When wave ii of wave A has retraced 50 to 61.8 percent of wave i, trade 3 units on catching ____ ____. Since the expected decline is a mere correction a-b-c, and the profit potential is limited. Tactics are adjusted accordingly.
third trend (of a wave-sequence)
33. [A] Put a stop-loss order just above the level of Point T, If the stop is elected, by (1)____ units. The size of the stake depends on how the length of the previous wave 3. If wave 3 was not (2)_____, trade up to a maximum of units.
• (1) 6-10
• (2) extended

** Quick and short trade is recommended around critical points
34. [A] After "a five-wave" sequence from Point T, this 61.8% level of previous wave 5 can be (1)_____. The level is also at the top of previous (2)_____ or (3)___% of previous impulse waves.
• (1) Point Z
• (2) wave 3
• (3) 38.2
35. [A] The bottom of wave 5, and "also ending point of ____" can be calculated by using FMM. At the projected level, wait and see wave B.
wave A
36. [A] _____ can be 38.2% level of the move from Point 0 to Point T. Taking some profits at 38.2 percent retracement level is a very logical action.
wave A
37. [A] The count of the minor waves sometimes cannot precisely produce _____, (as it often happens in short-term wave schemes), for the reason that the larger-degree wave reaches previous critical levels.
a five-wave sequence
38. [C] When wave B has retraced 38.2 to 50 percent of wave A, trade __ more units.
3
39. [C] Move the stop-loss above the (1)____ percent retracement level of wave A after the price goes (2)____ the end of wave A. If the stop-loss is elected, cover all short position and stand aside.
• (1) 61.8
• (2) BELOW
40. [C] Compute for the likely trough of wave v of wave C using FMM. The target for wave C is often equal of the length of wave __.
wave A
41. [Cor.] There is a popular maxim with wave analysts, which should set the tone for this section. "You make money trading the impulse phases, and you ___ it trading the corrections."
lose (?)
42. [Cor.]  The market spends about ___ percent of the TIME in consolidation, while impulse waves take up the rest. Side-standing during corrections of course mean that the trader will be idle for more than half of time.
70
43. [Cor.] There are situations where corrective waves can be extremely profitable, as in second waves. It is normal for ____ ____ to retrace 50 percent or more, and also the wave makes full retracement of 100 percent is not unusual. Trade corrective waves with much caution if you require profits.
second wave (w2/wB)
44. Do I win?
I do WIN
 Author: WaverTate ID: 303233 Card Set: My TAF Trading Updated: 2015-06-14 14:48:14 Tags: TAF Folders: Description: MyCard Show Answers: