Nadex2

Answers for Quizzes in Guide to Trading Nadex Binary Options book.

Chapter 2 Answers:

1. $100
2. Higher
3. Short
4. Long
5. Lower
6. False.  Binary Options do not use stops because you limit your risk on entry.
7. $55 (85 – 30)
8. Sell
9. $5 (If your risk was $40, that means the price of the binary was $60.  $60 – $55 = $5)
10. No.  2100 is equal to 2100 not greater than 2100.
11. Yes, short positions can equal the strike price.
12.  Buy
13. False
14. 100 – entry price
15. 100 – risk on entry
16. Offer price or entry price
17. 100 – Bid or entry price
18. False

Chapter 3 Answers:

1. Out of the Money
2. At the Money
3. In the Money
4. OTM
5. ITM
6. ATM
7. ITM
8. ATM
9. Wall St 30
10. Emini S&P 500
11. Russell 2000
12. USDJPY, EURUSD
13. 12
14. Weekly
15. OTM
16. ITM

Chapter 5:

1.  Green
2. Red
3. Open, close
4. Bullish Pin
5. Left
6. Top of the body
7. Bearish Outside Bar
8. Bottom of the body
9. Bottom of the body
10. Higher than the close of Bar #2
11. Top of the body
12. Bearish PIN
13. High
14. Up
15. Right
16. Low
17. False
18. False
19. High
20. False
21. Lower than the low of bar #2
22. True
23. Outside
24. Bullish Outside Bar
25. Long Wick
26. Down
27. Low

Chapter 6

1. Higher highs, higher lows
2. Lower lows, lower highs
3. Previous low
4. Go upwards
5. Resistance
6. Support
7. Congestion
8. True
9. True
10. Higher timeframe Support
11. Resistance
12. Support
13. Any three of the following:  Bollinger Bands, Keltner Channels, Linear Regression Channels, Moving Averages, Average True Range, Pivot Lines, Fibonacci Lines, Triangles and Pennants
14. Support
15. Waves
16. Resistance
17. Highs, lows
18. Retest for resistance
19. Support
20. Support
21. Mid-range
22. Identify a low risk entry
23. False
24. Trend
25. Higher lows, lower lows
26. Lower lows, higher lows
27. Lower highs, higher highs
28. Higher highs, lower highs

Hidden Divergence in Downtrend

Trend Divergence in an Uptrend

Hidden Divergence in an Uptrend

Trend Divergence in a Downtrend