S3 3.1

Question 1

What does Technical analysis use?

Answer 1

1) Price charts
2) MAs
3) Trend lines
4) Trading volume
5) Open interest

Question 2

What are the 2 types of charts

Answer 2

1) Bar charts

2) Point and figure charts

Question 3

Is a Head and Shoulders Top formation bearish or bullish

Answer 3

Bearish

Question 4

Is an Inverted Head and Shoulders bottom formation bullish or bearish

Answer 4

Bullish

Question 5

What does an ascending triangle indicate?

Answer 5

Breakout to the upside

Question 6

What does a descending triangle indicate?

Answer 6

Breakout on the downside

Question 7

Which 2 indicators indicate major market moves?

Answer 7

1) Double top (M-shape) bearish

2) Double bottom (W-shape) bullish

Question 8

Support level

Answer 8

Prices bottom here, then we have an increase in demand

Question 9

Resistance level

Answer 9

Prices stop increasing here, then an increase in supply takes over

Question 10

When do Gaps occur?

Answer 10

Jump or drop in price without trading taking place

Question 11

What are Yield Curves used for?

Answer 11

To Monitor Interest rate movements