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NEW QUESTION 44
Which of the following is a true statement according to Elliott Wave Theory?
- A. Triangles are usually second waves preceding a longer third wave
- B. In the stock market, wave 5 is the most common to extend
- C. Waves can be expanded into longer waves and subdivided into shorter waves
- D. The Pythagorean theorem is the mathematical basis for Elliott Wave Theory
Answer: C
NEW QUESTION 45
When small cap stocks have abnormal strength, this can be attributed to the:
- A. The January Effect
- B. Hindenburg Omen
- C. Kondratieff K-Wave
- D. The January Barometer
Answer: A
NEW QUESTION 46
Which of the following would NOT be true in designing a trading system utilizing bands?
- A. Close out longs when prices reverse and go below the center of the band
- B. Buy when prices penetrate the upper band
- C. Close out shorts when prices reverse and go below the center of the band
- D. Sell when price breaks below the lower band
Answer: C
NEW QUESTION 47
In point and figure theory, triple-tops and triple-bottoms, when breached:
- A. Will lead to a stronger directional move
- B. Lead to smaller continuation patterns
- C. Suggest a failure in the longer term pattern
- D. Frequently leads to a consolidation phase
Answer: A
NEW QUESTION 48
Which of the following method is used to plot sequential trading data? Choose the best possible answer.
- A. Line charts
- B. Bar charts
- C. Japanese candlestick charts
- D. Point-and-figure charts
Answer: D
NEW QUESTION 49
Which of the following is true of volume and open interest?
- A. Volume precedes price
- B. Decreases in volume and open interest help confirm the resolution of price patterns
- C. Within an uptrend, a sudden leveling off or decline in open interest often signals that the current trend will accelerate
- D. On-balance volume is not as accurate measure of volume as basic volume column charts
Answer: A
NEW QUESTION 50
Which of the following is a CORRECT usage of an oscillator constructed using two moving averages?
- A. To help identify long-term variations from the short-term trend
- B. All of the above
- C. To spot confirmations between technical indicators
- D. To pinpoint the crossing of two moving averages
Answer: D
NEW QUESTION 51
In some point-and-figure charts, what is the actual representation of the new price recorded on the chart?
- A. The first letter of the month is plotted
- B. The name or the number of the month is plotted
- C. The first letter or the number of the month is plotted
- D. The number of the month is plotted
Answer: C
NEW QUESTION 52
Which of the following is a CORRECT interpretation of the shooting star pattern?
- A. Shooting stars in charts, as in life, are omens of good fortune
- B. It is even more bearish than the gravestone doji candle
- C. It is a bearish reversal pattern
- D. The color of the real body is of utmost importance to its significance
Answer: C
NEW QUESTION 53
Which of the following factors would increase the predictive power of the evening star pattern?
- A. If there is light volume on the first candle of the pattern and heavy volume on the last candle of the pattern
- B. If the last candle closes deeply into the body of the first candle
- C. All of the above
- D. If there is no overlap among the real bodies of the candles in the pattern
Answer: C
NEW QUESTION 54
Which of the following is most likely to occur when the overall market is deeply oversold and on the verge of reversing?
- A. Leading groups make new lows and accelerate to the downside
- B. Leading groups fail to confirm new lows
- C. Relative strength of lagging groups begins to improve
- D. Lagging groups fail to confirm new lows
Answer: B
NEW QUESTION 55
If the upper breakout level is getting higher and higher along the upper trend line which of the following statement is not predicted correctly about this trend?
- A. It is increasing the risk
- B. It is also moving farther from any realistic protective stop level
- C. It using up much of any potential gain just before a breakout
- D. It using up much of any potential gain after a breakout
Answer: C
NEW QUESTION 56
Tick volume refers to:
- A. the number of contracts traded at each price tick.
- B. the number of contracts traded at each time interval.
- C. the number of recorded price changes during a particular time interval.
- D. the change in open interest during a particular time interval.
Answer: C
NEW QUESTION 57
__________ is used to calculate the relative volatility of the current portfolio compared to the benchmark by calculating the annualized return less the risk-free return and then divided by beta.
- A. Calmar ratio
- B. Sortino ratio
- C. Sharpe ratio
- D. Treynor ratio
Answer: D
NEW QUESTION 58
What trading decision must a trader make based purely on trend line in the chart below?
- A. Close out short positions
- B. Close out long positions
- C. Trading decisions cannot be made by using trend lines.
- D. Hold long positions
Answer: D
NEW QUESTION 59
Which of the following BEST describes the rule of alternation?
- A. Downtrends follow uptrends
- B. Price follows volume
- C. Prices alternate in Fibonacci sequences
- D. Complex patterns follow simple patterns
Answer: D
NEW QUESTION 60
Which of the following applies to the interpretation of point and figure charts in analyzing futures prices?
- A. Only the most basic techniques are generally used such as a one box breakout
- B. Incorporating open interest data into a point and figure chart makes this type of chart more useful for futures
- C. Pattern analysis is more complex than for stocks
- D. Futures prices offer a greater variety of chart formations than stocks
Answer: A
NEW QUESTION 61
What method could one utilize to analyze the long-term trends of futures prices, despite the fact that each contract is ONLY traded for several months?
- A. Equivolume charts
- B. Continuation charts
- C. Candlestick charts
- D. Point and figure charts
Answer: B
NEW QUESTION 62
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