Trading Smarter and Winning With OFA

Days 1 and 2
1. What determines price movement?
a. More buyers
b. More sellers
c. More limit orders to buy or sell
d. More market orders to buy or sell

2. We read order flow in two ways

a. As a process for context and as a way of seeing momentum
b. As a way of identifying levels to trade and as a way to manage stops
c. As a point in time method for trade entry and management and as a process for
understanding market context
d. As a way of identifying market participant fair and unfair prices

3. True or false?
a. The auction process for markets was developed for online, electronic trading?

4. What is the only known truth in the market?

5. The difference between the bid and the offer is called the ______________.

6. How many prices are there at any given time in the auction? __________
7. Your first job as a trader is to
a. Do homework and create a trade plan with areas for trades
b. Be patient
c. Manage Risk
d. Take heat on trades

8. True or False?
a. The probe and rotation setting in the OFA/Ninja Framework indicator should be kept to
default?

9. You care about price movement because

a. It is part of the auction and you need to understand price movement to trade effectively
b. Because it is what will make you win or lose in a trade
c. Because the market moves from balance to imbalance
d. None of the above

10. The Volume Profile Measures

a. Volume that has executed specifically at the bid and at the offer
b. All volume, at each individual price
c. Total volume of all limit orders filled
d. None of the above

11. The strong/weak bid/ask settings are likely to be changed under what circumstance?
a. Time of day
b. Between sessions
c. With high and low volume levels for an instrument
d. Direction of the trend

12. The primary role of the Volume Profile is to:

a. Provide trade confirmation support for indicator based training
b. Show market participant strength and weakness
c. Facilitate price movement through the bid and ask process
d. Identify fair and unfair prices over a specific period of time
13. When you enter a trade, the ONLY thing that you can manage and control is:
a. Your emotions
b. Your patience
c. Your profit
d. Your risk

14. A secondary role of the Volume Profile is to:

a. Identify market structure over a period of time
b. Provide trade and price targets with high volume areas
c. Provide areas of opportunities for trade entries
d. All of the above

15. True or False:

a. A Volume Profile can only be used with an instrument that has high volume?

16. True or False:

a. The Volume Profile is a time based tool

17. True or False:

a. The Volume Profile is a trade confirmation tool

18. True or False:

a. The Volume Profile cannot be used for commodities

19. True or False:

a. Every Volume Profile has the same 7 elements

20. The market’s job is to generate trade volume, the Volume Profile shows the areas where the
market does this very well in the form of:
a. High Volume Areas
b. Low Volume Areas
c. The Bell Curve
d. The finish to the auction
21. True or False?
a. An unfair price is otherwise known as a low volume area?

22. A low Volume Area is one of the following:

a. A place where market participants agree on price
b. The peak of the bell shape curve
c. An area where participants do not like to “do business”
d. A target area for a trade

23. A low Volume Area can provide the following:

a. A potential trade entry location
b. A prediction of price movement
c. A view of market structure
d. Direction on where price will close

24. A High Volume Area can provide the following:

a. A prediction of price direction
b. Confirmation for a trade
c. A target for a trade
d. Information as to where market participants do not want to trade

25. What is the market doing if it is in balance?

a. Probing new prices
b. Trending
c. Rotating
d. Stalling

26. The two questions that we are always trying to answer are:
a. Where is my next trade and what is my stop
b. What is the market trying to do and how good of a job is it doing
c. What is my profit objective and risk tolerance on a trade
d. Where is VPOC and what did price do last time there

27. True or False:

 a. A “finish” is one of the seven elements of the volume profile?

28. When we are using order flow as a process for gaining context, we are watching:
a. Where unusually high volume comes in to the market (VCA) and what kind of volume it
is and what effect it has on price
b. Where buyers and sellers relent, shown by weakness in the print
c. The bid/ask prints at the high and low edges of rotation
d. All of the above
e. None of the above

29. The volume profile will show a trend day when:

a. VPOC remains in an area for the entire day
b. Price distributions keep building in the same direction as price
c. Volume in the profile shows weak structure
d. We see responsive selling or buying

30. When building a composite volume profile, you should include at least the following in the
profile:
a. The previous 3 days of trading
b. The last swing (high and low)
c. The last swing high
d. The last swing low

31. Explain, in your own words, why understanding market context is so important

32. What does it mean when the volume profile is growing in an area?
a. Price acceptance
b. Price rejection
c. The other side is stepping in
d. None of the above