A trend based trading system where signals occur when the current high or low price exceeds the previous swing high or low price:
A trend based trading system where signals occur when the current high or low price exceeds the previous swing high or low price:A . Point and figureB . Simple moving averageC . Swing breakoutD . N-day breakoutView AnswerAnswer: C
Which of the following is a valid guideline in using technical analysis to make investment decisions among stock market sectors?
Which of the following is a valid guideline in using technical analysis to make investment decisions among stock market sectors?A . Relative strength analysis allows for identification of the strongest and weakest sectorsB . Charting tools such as trendlines and moving averages should not be employed with relative strength linesC...
Which of the following is the short-term trading cycle that tends to influence most commodity markets?
Which of the following is the short-term trading cycle that tends to influence most commodity markets?A . 10-dayB . 12-dayC . 19-dayD . 28-dayView AnswerAnswer: D
According to Charles Dow, what has been the main downfall of Wall Street investors?
According to Charles Dow, what has been the main downfall of Wall Street investors?A . Independent thinkingB . Failure to stay the courseC . Pride of opinionD . Failure to abide by classic trading rulesView AnswerAnswer: C
What percentage of return should be earned if you have $100 in the capital and sustain a 20% loss to return to the break-even level of $100?
What percentage of return should be earned if you have $100 in the capital and sustain a 20% loss to return to the break-even level of $100?A . Return 30 percent to the $80 to return to the $100 break-even levelB . Return 25 percent to the $70 to return...
ALL of the following are standard patterns used with 3-Box reversal point and figure charts, EXCEPT:
ALL of the following are standard patterns used with 3-Box reversal point and figure charts, EXCEPT:A . Bullish or Bearish TriangleB . Triple Top or Triple BottomC . Double Top or Double BottomD . Bullish or Bearish FulcrumView AnswerAnswer: D
Which of the following factors would increase the predictive power of the evening star pattern?
Which of the following factors would increase the predictive power of the evening star pattern?A . If there is no overlap among the real bodies of the candles in the patternB . If the last candle closes deeply into the body of the first candleC . If there is light...
Which of the following are valid point and figure chart trading tactics?
Which of the following are valid point and figure chart trading tactics?A . Simple trade signals can be used for new commitments whereas complex signals are needed for liquidation purposesB . Long positions are closed when they fall below the trend line and short positions are closed when they rise...
Which of the following rules can be utilized as an entry strategy for a long trade based bullish MACD histogram divergence?
Which of the following rules can be utilized as an entry strategy for a long trade based bullish MACD histogram divergence?A . Go long when the MACD fast line turns higher.B . Go long when the MACD slow line turns higher.C . Go long when the histogram ticks up from...
Which of the following is one of the key rules for traders?
Which of the following is one of the key rules for traders?A . Take profits but be patient with losing positions and give them time to reboundB . Buy low, sell highC . Be a contrarian and trade against the trendD . Always meet margin calls promptlyView AnswerAnswer: B