Question on Theory and Practical Charts

1 / 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.

2 / 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

3 / 25

When a Seasonality cycle occurs

Monthly

Yearly

Half-yearly

Quarterly

4 / 25

What is the meaning of Price of money

It is difficult to earn money.

Interest rates charged on borrowed money to get price.

Inflation that changes the purchasing power of money.

Purchasing power money itself.

5 / 25

A gap up followed by a long upper shadow on a candle chart may indicate

A bullish reversal signal

A pullback

Equilibrium

A bearish reversal signal

6 / 25

In a Head & Shoulders pattern, there's usually a pattern of consistent volume

Peaks during the development of the left shoulder are the most pronounced

Volume tends to lighten as prices approach the peak

Volume typically surges at the breakout from the neckline

Volume tends to spike noticeably during a breakout from the neckline

7 / 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.

8 / 25

The Golden Cross describes the point when

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

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

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

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

9 / 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

10 / 25

RSI is valued for its stability compared to other momentum indicators because

It incorporates all period values in its calculation

It efficiently identifies overbought or oversold conditions using predefined thresholds

It ranges from 0 to 100

It calculates using only the initial and final values of the period

11 / 25

An exponential moving average

Assigns greater importance to the latest observation

Assigns reduced significance to the most recent observation

All observations are treated with equal weight

Operates without any delay or lag in responsiveness

12 / 25

What does the term 'market risk' imply for individuals short-selling a security?

A drop in value of security

An increase in value

A default by counterparty

An increase in volatility

13 / 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

14 / 25

Symmetrical triangles lasting less than three weeks are more likely to be classified as

Flags

Wedges

Pennants

Consolidations

15 / 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.

16 / 25

Trend lines in charts help illustrate and analyze the direction of price movements

The longer trend lines remain effective, the more significant they become

Confirming a change in trend, but with a delay

Ineffective for short-term trading

Not suited for short-term trading success

17 / 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

18 / 25

In a 10-day simple moving average, each day’s price is assigned a weighting of

5%.

10%.

20%

25%

19 / 25

What benefits do companies experience when they issue equity to investors?

Investors tend to buy equity more than bonds.

Equity is more liquid than bonds or notes.

Equity need not be purchased back.

Equity gives voting rights to investors.

20 / 25

Among the following options, which trade signal is considered the most reliable?

A new High or Low formed at weekly close

A new low formed at the weekly opening

A new high formed at daily close

A new high formed at the daily opening

21 / 25

An engulfing candlestick pattern is considered a signal of a

Bearish continuation

Long-term reversal

Bullish continuation

Short-term reversal

22 / 25

When a majority of investors have the same view of the market

The market anticipates a reversal that goes against the prevailing majority opinion.

It is reasonable to infer that the market could continue trending towards higher levels.

Market sentiment are positive.

It is reasonable to assume that the likelihood of a trend reversal is low.

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

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.

25 / 25

Put Call ratio (PCR) is ________ indicator

Market sentiment indicator

Market momentum indicator

Market breadth indicator

External indicator for markets

Your score is

0%

Question on Theory and Practical Charts

Test Your Knowledge

Courses

Services

Subscribe