Technical Analysis

Question 1

Like a bar chart, a _____ chart also provides four prices per data point entry: the opening and closing prices and the high and low prices during the period

Answer 1

candlestick

Question 2

In a candlestick chart, White body means market closed __ and a black body that it closed ___.

Answer 2

up, down

Question 3

___________ is shown by a line chart of the ratio of two prices, with the asset under analysis as the numerator and with the benchmark or other security as the denominator,

Answer 3

Relative strength analysis

Question 4

A _______ is a reversal in the movement of the security’s price, it must stop at a higher low than the prior lows in the trend period

Answer 4

retracement

Question 5

The _________ states that once a support level is breached, it becomes a
resistance level.

Answer 5

change in polarity principle

Question 6

The head and shoulders pattern consists of 3 segments:

Answer 6

Shoulder, head, shoulder

Question 7

A _____ is when an uptrend reverses twice at roughly the same high price level.

Answer 7

double top

Question 8

________ are formed when the price reaches a low, rebounds, and then sells off back to the first low level.

Answer 8

Double bottoms

Question 9

________ are a type of continuation pattern. They come in three forms, symmetrical triangles, ascending triangles, and descending triangles

Answer 9

Triangle patterns

Question 10

A ____ is formed by parallel trendlines, in the same way that most countries’ flags are rectangular and create a parallelogram. A _______
formation is similar except that the trendlines converge to form a triangle.

Answer 10

flag, pennant

Question 11

When a short- term moving average (ie 1 month)
crosses from underneath a longer-term average (ie 3 months), this movement is considered bullish and is termed a _____. Conversely, when a short- term moving
average crosses from above a longer- term moving average, this movement is considered bearish and is called a ________.

Answer 11

golden cross, death cross

Question 12

________ consist of a moving average plus a higher line representing the
moving average plus a set number of standard deviations from average price (for the same number of periods as used to calculate the moving average) and a lower line that is a moving average minus the same number of standard deviations

Answer 12

Bollinger Bands

Question 13

The ROC momentum oscillator =

Answer 13

(Pt - Pt-i) *100

Question 14

A ___________ is computed over a rolling time period.6 It graphically compares a security’s gains with its losses over the set period.

Answer 14

relative strength index (RSI)
70+ overbought
30- oversold

Question 15

RSI =

Answer 15

100 - 100/(1+ RS), where RS = SUM(up)/SUM(down)

Question 16

The ____ is the difference between a short-term and a long- term moving average of the security’s price

Answer 16

MACD

Question 17

Short interest ratio

Answer 17

Short interest/Average daily trading volume

Question 18

A common flow of funds indicator is the ________ , also called the TRIN (for “short- term trading index”). This indicator is applied to a broad market (such as the S&P 500) to measure the relative extent to which money is moving into
or out of rising and declining stocks. The index is a ratio of two ratios ______

Answer 18

Arms Index = Number of adv. issues ÷ Number of declining issues / Volume of adv. issues ÷ Volume of declining issues

Question 19

The long 54- year economic cycle is known as the _______ or ______.

Answer 19

Kondratieff Wave, K Wave