Question on Theory and Practical Charts

1 / 25

Put Call ratio (PCR) is ________ indicator

Market sentiment indicator

Market momentum indicator

Market breadth indicator

External indicator for markets

2 / 25

Breakouts in charts from support or resistance levels, patterns, or bands

More frequently, they experience a reversal and prove unsuccessful.

Usually signal a trend change.

Will retest the prior boundary approximately 75% of the time.

Are highly profitable signals.

3 / 25

Short covering in the futures market occurs when traders buy back previously sold positions to offset their short positions ?

Price increasing and open interest decreasing

Price decreasing and open interest decreasing

Price increasing and open interest increasing

Price decreasing and open interest increasing

4 / 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

5 / 25

Open interest in a futures contract indicates

The quantity of live contracts on a particular day

The number of active contracts on a specific day

The total volume of contracts traded in a single day

The quantity of active contracts on the initial day of each month

6 / 25

Tick volume refers to

The number of contracts traded at each time interval.

The variation in open interest over a specific time interval.

The number of recorded price changes during a particular time interval.

The number of contract traded at each price tick.

7 / 25

Trends are supported by _______ which might induce short-term _______ but delivers_______

volume spikes/ price patterns/ Investor demand

volatility after earnings/ Corporate fundamentals/ outperformance over time.

Interest rates/ fluctuation/ better returns for stocks.

Investor FII DII fund flow/ noise/ long term trend.

8 / 25

The Advance/Decline line is calculated by

Subtracting the number of advancing stocks and unchanged stocks from declining stocks.

Subtracting the number of advancing stocks from declining stocks and ignoring unchanged stocks.

Subtracting the number of declining stocks from advancing stocks and ignoring unchanged stocks.

Subtracting the number of advancing stocks from declining stocks and adding back the unchanged stocks.

9 / 25

When a Seasonality cycle occurs

Monthly

Yearly

Half-yearly

Quarterly

10 / 25

Volume divergences arise when

A new high in an uptrend occurs with decreasing volume

Volume decreases in a sideways congestion pattern

Declining volume within a sideways congestion pattern

Volume increases as open interest decreases

11 / 25

The most straightforward approach to identify a shift in trend from an upward to a downward direction during an uptrend is

Draw a trendlines along the peaks.

Use the slope of a long-term moving average.

Draw a best-fit line through the downtrend.

Draw a straight trendlines along the troughs.

12 / 25

Most breakouts are deceptive and do not successfully indicate a new direction because

Market moves sideways about 80% of the time.

Market moves sideways about 60% of the time.

Market moves sideways about 40% of the time.

Market moves sideways about 1000% of the time.

13 / 25

The primary function of a channel line is to

Identify potential reversal points

Establish basic direction

Identify a trend reversal

Evaluate the likely direction of the trend.

14 / 25

In a sideways trend, the crucial factor for determining the continuation of the trend is

Whether or not price has broken support/resistance

The trend of the OBV indicator

The duration of the ongoing movement.

The level of the RSI

15 / 25

What causes fluctuations in the purchasing power of currency?

Inflation

Compound interest

Asset allocation

Diversification

16 / 25

When utilizing RSI as an overbought/oversold indicator, a sell signal is triggered when

RSI dropping below its lower reference line and subsequently rebounding above it

RSI crossing above the midpoint (50 level)

RSI crossing below the midpoint (50 level)

RSI ascending beyond its upper reference line and subsequently crossing below it

17 / 25

High volume in a stock validates _______, while extraordinary surges in volume indicate _______

Breakouts/false breakots

Oversold indicators/overbought confirmation

Trend change/exhaustion

New price direction/reversal

18 / 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.

19 / 25

Candlestick patterns where the opening and closing prices are very close or identical are referred to as

Dark cloud cover

Marubozu

Piercing line

Doji

20 / 25

An uptick in the buying of options by market participants leads to

A decrease in open interest

A decrease in implied volatility

Either an increase or a decrease in implied volatility

An increase in implied volatility

21 / 25

The stochastic indicator basically gauges

It measures the current price movement's relative strength, ranging from 0 to 100

It gauges the strength of the ongoing price movement on a scale of 0 to 100

It assesses the strength of the current price movement on a 0 to 100 scale

It indicates the closing price's position within a historical high-low range

22 / 25

A ________ occurs after an upward breakout when prices retreat to the breakout point or chart pattern boundary within 30 days.

A throwback

A relief rally

A pullback

A dead cat bounce

23 / 25

The primary leaders of market crowds are

A significant portion of market participants who engage in trading based on impulse

Large Institutional Investors

Momentum of the underlying

Price of a security

24 / 25

Which indicator among the following is utilized to determine whether a stock is underperforming the market or not?

Moving averages

Relative strength index

Divergence studies

Relative strength

25 / 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.

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