Question 1

Which of the following is generally viewed as a bearish indicator for a stock?

Accepted Answer

A)  It has a relatively high short-interest ratio.
B)  Its 50-day moving average price has penetrated the 200-day average from above.
C)  Following a price drop,the price penetrates the moving average from below.
D)  It has an increasing relative strength ratio.E) B) and C)
F) A) and C)

Question 2

A support level is a price range:

Accepted Answer

A)  at which a significant increase in demand for a stock is expected.
B)  at which a significant increase in supply of a stock is expected.
C)  below which a stock price cannot go.
D)  above which a stock price cannot go.E) A) and B)
F) None of the above

Question 3

A daily accumulation of stocks advancing or declining is used in:

Accepted Answer

A)  volume of trading analysis.
B)  relative strength analysis.
C)  breadth of market analysis.
D)  short interest analysis.E) B) and C)
F) C) and D)

Question 4

The breadth of the market is typically measured by which of the following:

Accepted Answer

A)  200-day moving average.
B)  50-day moving average.
C)  the put-call ratio.
D)  the advance-decline line.E) All of the above
F) A) and B)

Question 5

In order to have confirmation of a major market trend under the Dow Theory,the:

Accepted Answer

A)  industrial and utility averages must confirm each other.
B)  transportation and utility averages must confirm each other.
C)  utility average must lead the transportation average.
D)  transportation and industrial average must confirm each other.E) A) and B)
F) C) and D)

Question 6

How does a point-and-figure chart compress many price changes into a small space?

Accepted Answer

By recording only "significant...

Question 7

One of the primary tools of a technical analyst is:

Accepted Answer

A)  sell-side research.
B)  buy-side research.
C)  Value Line earnings estimates.
D)  charts of stock price and volume.E) All of the above
F) C) and D)

Question 8

Secondary movements are often termed technical corrections.

Accepted Answer

A) True 
 B)False

Question 9

What four factors should be considered in testing technical trading rules?

Accepted Answer

Risk,transactions co...

Question 10

Technical analysis is sometimes called market or:

Accepted Answer

A)  external analysis.
B)  internal analysis.
C)  stochastic analysis.
D)  qualitative analysis.E) B) and D)
F) A) and B)

Question 11

Historical tests of filter rules indicate that:

Accepted Answer

A)  several filters were profitable before commissions,but not after.
B)  several filters were profitable before and after commissions.
C)  no filters were profitable even before commissions.
D)  all filters were profitable before commissions,but not after.E) All of the above
F) A) and D)

Question 12

The short interest ratio is found by dividing the number of shares sold short by the average:

Accepted Answer

A)  number of shares outstanding in the market.
B)  daily volume of trading on the exchange.
C)  number of stocks reaching new lows.
D)  daily number of stocks bought long.E) None of the above
F) C) and D)

Question 13

Conclusions about technical analysis suggest that:

Accepted Answer

A)  it is difficult to justify technical analysis.
B)  it has been found to be completely deficient.
C)  stock price movements repeat themselves constantly.
D)  there is complete agreement about the interpretation of technical signals.E) A) and B)
F) A) and C)

Question 14

Which of the following indicates the market is at its peak,according to contrarians?

Accepted Answer

A)  The short-interest ratio is low
B)  The bearish sentiment index is around 20 percent
C)  Mutual fund liquidity is low
D)  The number of stocks hitting all-time highs is lowE) B) and D)
F) A) and C)

Question 15

A bar chart is the simplest type of chart used in technical analysis.

Accepted Answer

A) True 
 B)False

Question 16

Technicians that utilize the CBOE put/call ratio generally believe:

Accepted Answer

A)  option investors tend to be losers.
B)  option investors tend to be winners.
C)  option investors are true technicians.
D)  option investors possess inside information.E) A) and D)
F) B) and D)

Question 17

Which of the following is not one of the factors to consider in performing a valid test of a technical trading rule?

Accepted Answer

A)  The transaction and other costs incurred by the rule.
B)  The consistency of performance from the rule.
C)  The holding period implied by the rule.
D)  The risk inherent in the rule.E) A) and B)
F) C) and D)

Question 18

One rule of thumb is that a stock is attractive when its relative strength has improved for at least:

Accepted Answer

A)  1 month.
B)  2 months.
C)  3 months.
D)  4 months.E) A) and B)
F) C) and D)

Question 19

Institutional investors are often considered to have the "smart money," while small,individual investors are not so well informed about the market.Which two sentiment indicators treat both institutions and individuals alike?

Accepted Answer

The odd-lot theory asserts that one shou...

Question 20

What is the advance-decline line?What does it tell the technician?

Accepted Answer

The net advance for a day is the number ...

Exam 16: Technical Analysis

Which of the following indicates the market is at its peak,according to contrarians?

Correct AnswerverifiedShow Answer

What is the advance-decline line?What does it tell the technician?

Correct AnswerverifiedThe net advance for a day is the number ...View AnswerShow Answer

The breadth of the market is typically measured by which of the following:

Correct AnswerverifiedShow Answer

Technical analysis is sometimes called market or:

Correct AnswerverifiedShow Answer

How does a point-and-figure chart compress many price changes into a small space?

Correct AnswerverifiedBy recording only "significant...View AnswerShow Answer

One rule of thumb is that a stock is attractive when its relative strength has improved for at least:

Correct AnswerverifiedShow Answer

A daily accumulation of stocks advancing or declining is used in:

Correct AnswerverifiedShow Answer

Historical tests of filter rules indicate that:

Correct AnswerverifiedShow Answer

Which of the following is not one of the factors to consider in performing a valid test of a technical trading rule?

Correct AnswerverifiedShow Answer

In order to have confirmation of a major market trend under the Dow Theory,the:

Correct AnswerverifiedShow Answer

Technicians that utilize the CBOE put/call ratio generally believe:

Correct AnswerverifiedShow Answer

Secondary movements are often termed technical corrections.

Correct AnswerverifiedShow Answer

What four factors should be considered in testing technical trading rules?

Correct AnswerverifiedRisk,transactions co...View AnswerShow Answer

Conclusions about technical analysis suggest that:

Correct AnswerverifiedShow Answer

Institutional investors are often considered to have the "smart money," while small,individual investors are not so well informed about the market.Which two sentiment indicators treat both institutions and individuals alike?

Correct AnswerverifiedThe odd-lot theory asserts that one shou...View AnswerShow Answer

Which of the following is generally viewed as a bearish indicator for a stock?

Correct AnswerverifiedShow Answer

A bar chart is the simplest type of chart used in technical analysis.

Correct AnswerverifiedShow Answer

One of the primary tools of a technical analyst is:

Correct AnswerverifiedShow Answer

The short interest ratio is found by dividing the number of shares sold short by the average:

Correct AnswerverifiedShow Answer

A support level is a price range:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
The net advance for a day is the number ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
By recording only "significant...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Risk,transactions co...
View Answer

Correct Answer
verified

Correct Answer
verified
The odd-lot theory asserts that one shou...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified