Understanding Broadening Formations

An illustration of a financial chart showing broadening formations, with upward and downward zigzag patterns, and annotations highlighting support and resistance zones.

Understanding Broadening Formations

Test your knowledge about broadening formations in financial trading with this informative quiz! Whether you're a beginner or an experienced trader, this quiz will help you grasp key concepts and principles related to price action and market behavior.

10 engaging questions
Multiple choice and open-ended format
Assess your understanding of broadening formations

10 Questions2 MinutesCreated by AnalyzingWave501

Why do we draw broadening formations?

To see where there may be support/resistance in the near future

To see where volume from contracts get picked up

To see how price reacts with the stocks volume profile

What is the expiry date of broadening formations on the 1 day timeframe, using my method? (I went over it briefly, use common sense)

1-2 years

1-3 months

4-5 years

8-9 months

What is the expiry date of broadening formations on the 1 week timeframe, using my method?(Hint: if a 3 on the day takes a day to form, and a 3 on the week takes 5 days to form, what does that tell you about the timeframe?)

2-4 months

Around 1 year

3-4 years

4-6 months

What is the expiry date of broadening formations on the monthly and quarterly timeframe? (Use same hint as before)

M=2-3 years, Q=5-6 years

M=1-2 years, Q=3-4 years

M=5-6 years, Q=8-10 years

M=9-11 months, Q=2-3 years

What is the expiry date of a yearly broadening formation? (Look at the S&P yearly chart, you’ll find your answer)

4-5 years

40-50 years

8-12 years

15-18 years

What is a irrelevant broadening formation?

A BF that is near price action, and has credible bounces

A BF that is very far away from price action, very unlikely price action will touch it before the BFs expiry

A BF with lots of credible bounces

A BF that could be touched before the BFs expiry

Are these irrelevant BFs? (We’re on the daily)

Top yes, bottom no

Top no, bottom yes

Top yes, bottom yes

Top no, bottom no

Are these irrelevant BFs?

Top no, bottom no

Top yes, bottom no

Top yes, bottom yes

Top no, bottom yes

Are these BFs irrelevant? (THIS IS THE YEARLY TIMEFRAME OF S&P) Be very careful with your answer and use common sense, I won’t count it right if it doesn’t seem like you understand it, even if your answer is right.

Understanding Broadening Formations

Understanding Broadening Formations

More Quizzes