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

Hidden Divergence in Downtrend

 

Trend Divergence in an Uptrend

Trend Divergence in an Uptrend

Hidden Divergence in an Uptrend

Hidden Divergence in an Uptrend

Trend Divergence in a Downtrend

Trend Divergence in a Downtrend