54: technical analysis Flashcards
1
Q
Looks for changes in intrinsic value; forward looking
A
fundamental analysis: what prices should be based on DCF
2
Q
Tries to predict future price changes in past trade prices and volume
A
Technical analysis
3
Q
In a candle stick chart, if the bar is open it signifies that:
A
the stock closed at a higher price than the open, on that trade day
4
Q
Downtrend line connects:
Uptrend line connect:
A
downtrend connects highs: lower highs & lower lows
uptrend connects lows: higher highs, higher lows
5
Q
Price where buying pressures limits a downtrend: Demand > Supply
A
Support (at the bottom-floor)
6
Q
Price where selling pressure limits an uptrend: Demand < Supply
A
Resistance (at the top- ceiling)
