Welcome to Exercise 1! This is a short exercise to test your understanding of Ranges on a market. You should be able to open a chart of any market, and start breaking down the Ranges, to determine where you are in the Big Picture. You will be looking at an Australian stock called Wesfarmers (WES.ASX).
Your primary goal is to work out WHERE we are on this market. Is WES in an uptrend or downtrend? Which range are we in? Which section are we in? What is the next milestone to watch out for? You might find it helpful to revisit pages 145 to 151 of The Number One Trading Plan, where David takes you through Prime Numbers.
A lot of the “Pause the Webinar” exercises will be on WES. Since later techniques like Time by Degrees or Angles rely heavily on Ranges, you would be well advised to do the work properly here.
I have included some suggested answers to this exercise further on in this booklet, however you will get a lot more out of the exercise if you attempt the work yourself, first, instead of going straight to the answers.
To get you started, I have included a chart below which shows the 23 February, 2015 high on Wesfarmers, which is the current All Time High. Have fun!
