Question on Theory and Practical Charts

1 / 25

What will happen near the end of a recession

Commodities turn before the bonds and stocks.

Stock turn up before the bonds and commodities

Bonds turn up before the stocks and commodities

All the asset classes turn up simultaneously.

2 / 25

An engulfing candlestick pattern is considered a signal of a

Bearish continuation

Long-term reversal

Bullish continuation

Short-term reversal

3 / 25

A _________ gap emerges at a point where traders observe distinct resistance or support

Breakaway

Runaway

Area

Exhaustion

4 / 25

Which pair among the following signals the end of a bull market?

Trading volume is low and the vix dips below 15.

Populor stocks collapse while the broad market hits new high.

Small caps and fmcg stocks underperform the Nifty50.

Trading volume is high and everywhere people are talking about stock market.

5 / 25

Which statement accurately characterizes the Head and Shoulders Top pattern?

The volume stays consistent throughout the formation

The head has twice the width compared to the shoulders

The right shoulder is typically smaller than the left shoulder

Pullbacks often occur after the breakout

6 / 25

Utilizing _____ as a risk measure entails estimating potential price fluctuations in both directions

Implied Volatility

Plurality Index

Put/call parity

Standard Deviation

7 / 25

A descending triangle has which of the following line

A horizontal support line

A horizontal resistance line

Sloping support and resistance lines

A sloping support line

8 / 25

Common gaps typically occur in

Trending market

Bullish market

Bearish market

Trading range

9 / 25

A critical pitfall to steer clear of in price analysis that can lead to financial paralysis is

To see price patterns where non trade is exist and using so many indicator.

To find pattern that are not results of indictor but due to holding loss making position.

To find patterns that are a results of human behavior, emotion and greed.

To put less weight on recent history than what is stastically suitable.

10 / 25

Resistance line are throught to be less clear than support lines because they are

associated with higher volatility and erratic price movements.

drawn upward sloping.part of a price pttern.

part of a price pttern.

drawn to represent a range of prices rather than a specific level.

11 / 25

Lower-priced securities generally exhibit a _____ Average True Range (ATR), while higher-priced securities typically demonstrate a _____ ATR.

Higher, higher

Lower, lower

Higher, lower

Lower, higher

12 / 25

When a Seasonality cycle occurs

Monthly

Yearly

Half-yearly

Quarterly

13 / 25

If the stock market achieves a new high while the Advance/Decline (A/D) line fails to reach its peak, it suggests that

With fewer stocks participating, the rally may be approaching its conclusion.

The market has the potential to extend its upward movement.

With a substantial number of stocks participating, the rally may be nearing its end.

With a broad participation of many stocks, the rally may still have room to continue.

14 / 25

What happens when the bid-ask spread becomes Equal to zero?

A tick appears on the chart

Execution of a sell order

Execution of a buy order

Any one of the above takes place.

15 / 25

What causes fluctuations in the purchasing power of currency?

Inflation

Compound interest

Asset allocation

Diversification

16 / 25

The Average True Range (ATR) is an indicator designed to gauge the market's volatility :

Volatility

Breadth

Volume

Momentum

17 / 25

When a trader notices a breach of the outer boundary of a Bollinger Band, the most likely interpretation is

The current trend is expected to remain unchanged

Initiate a trade in the opposite direction of the breakout

A horizontal or sideways trend is anticipated

Enter the trade in the direction of the breakout

18 / 25

When a sequence of short candlesticks follows a period of relatively long sessions, it suggests

Reversal

Weakening momentum

Rising momentum

Sell signal

19 / 25

The Death Cross describes the point when

The 50-day moving average crosses below the 200-day moving average.

Current price crosses below 50-day and 200-day moving averages.

The 50-day moving average crosses above the 200-day moving average.

Current price crosses above 50-day and 200-day moving averages.

20 / 25

Most profits are typically generated in markets characterized by __________ volatility.

Low

High

No

Medium

21 / 25

Gaps that emerge in the middle of a price trend are referred to as

Continuation gaps

Runaway gaps

Exhaustion gaps

Opening gaps

22 / 25

How to draw an upward trend line

A descending slope formed by connecting two or more low points

A rising slope created by linking two or more high points

A descending slope created by connecting two or more high points

An upward slope created by connecting two or more low points

23 / 25

In a two-moving averages system, specific rules for generating a buy signal include ?

Trigger a buy signal when the current price crosses over both moving averages

Initiate a buy signal when the current price crosses above both moving averages

Generate a buy signal when the current price crosses above both moving averages

Execute a buy order when the faster moving average crosses over the slower moving average from the top

24 / 25

A contraction of Bollinger Bands typically suggests that

A stock’s volatility has decrease

A stock is ready for a decline soon

A stock’s volatility has increased over a period of time

A stock is ready for a rally soon

25 / 25

Put Call ratio (PCR) is ________ indicator

Market sentiment indicator

Market momentum indicator

Market breadth indicator

External indicator for markets

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