Middle School

Question 1

Leading indicators are also known as ___.

Answer 1

oscillators

Question 2

Lagging indicators are also known as ___.

Answer 2

momentum indicators

Question 3

What is an oscillator?

Answer 3

An object or data that moves back and forth between two points

Question 4

Which among the following is not a leading indicator?

a. Stochastic
b. Parabolic SAR
c. Exponential Moving Average

Answer 4

Exponential Moving Average

Question 5

What is used to calculate the stochastic indicator?

Answer 5

high-to-low range of the time period

Question 6

Lagging indicators spot trends once they have been established but at the expense of what?

Answer 6

delayed entries

Question 7

What’s the primary advantage of lagging indicators over leading indicators?

Answer 7

less vulnerable to fakeouts

Question 8

Which among the following is not a lagging indicator?

Answer 8

Stochastic

Question 9

Which chart pattern is formed when price consolidates into a box after a downtrend? (Indicating sellers probably need to pause and catch their breath before taking the pair any lower.)

Answer 9

Bearish Rectangle

Question 10

In a head and shoulders pattern, the distance price moves after a break is usually equal to…

Answer 10

The distance from the high point of the head to the neckline

Question 11

What does “bilateral” mean when talking about chart patterns?

Answer 11

It means that there is no bias as to where price is headed, the breakout can be either up or down

Question 12

This chart pattern is very similar to the rectangle. It usually occurs when sellers or buyers pause to gather enough energy to take the price back in the same direction. The shape that price forms after the downtrend or uptrend is a small triangle.

Answer 12

Pennant

Question 13

What do you call chart patterns that signal that the ongoing trend will resume?

Answer 13

Continuation

Question 14

What do you call the chart pattern that is formed when a valley is formed, followed by an even lower valley, and then another valley equal to the first valley in a downtrend?

Answer 14

Inverse head and shoulders

Question 15

Which type of chart pattern forms when price consolidates between an upward support line and a downward resistance line?

Answer 15

Wedge

Question 16

Whenever price breaks out to the upside in a bullish rectangle, the move up is usually…

Answer 16

The size of the rectangle

Question 17

Where is a reasonable place to put your stop when trading chart patterns?

Answer 17

The middle of the original formation

Question 18

Which type of trader is Pivot Point analysis best suited for?

Answer 18

Day Trader

Question 19

In Pivot Point analysis, what does R stand for?

Answer 19

Resistance

Question 20

Pivot points are very similar to Fibonacci retracement levels as they pinpoint potential support and resistance levels. Pivot points have one perceived advantage. What is this advantage?

Answer 20

Fibonacci levels are drawn, therefore subjective, while pivot points are calculated, therefore objective

Question 21

How do range-bound traders typically use pivot points?

Answer 21

To identify potential reversal points where they can place their buy and sell orders

Question 22

How do sentiment traders use pivot points?

Answer 22

To determine the bullishness or bearishness of a pair

Question 23

Which market close do traders usually use to determine the high, low, open, and close values of their pivot points?

Answer 23

New York

Question 24

If S1 is holding, and you decide to buy, where should you look to take profits?

Answer 24

PP

Question 25

Which of the following is another type of Pivot Point:

Answer 25

Woodie

Question 26

True or false: Pivot point analysis is enough to trade forex.

Answer 26

False