The Relationship Between Time and Price

Question 1

The relationship of price and time:

a) is constant in all time frames
b) is different for various asset classes
c) cannot be predicted with great accuracy
d) a and b

Answer 1

a) is constant in all time frames

Question 2

Without time and price axes on a chart:

a) it is impossible to identify the underlying asset
b) you can tell the market trend
c) the market can become uncertain
d) none of the above

Answer 2

a) it is impossible to identify the underlying asset
c) the market can become uncertain * 1/2 credit

Question 3

The time and price axes allow traders to:

a) have a directional compass
b) sell the market without much risk
c) guarantee winning trades
d) all of the above

Answer 3

a) have a directional compass

Question 4

Markets can:

a) be confidently predicted from time and price charts
b) never be accurately predicted
c) be beaten even if they are illiquid
d) be rigged by high-frequency traders

Answer 4

b) never be accurately predicted

Question 5

The longest time frame is:

a) not related to shorter time frames
b) not valid if the market is blowing off
c) the sum of all shorter time frames
d) generally in congestion

Answer 5

c) the sum of all shorter time frames
d) generally in congestion *1/2 credit

Question 6

In a bull market, the shorter time frames:

a) are always bullish
b) are not relevant
c) can be bearish
d) none of the above

Answer 6

c) can be bearish

Question 7

Another name for the longest time frame is:

a) the major trend that we are observing
b) the strong hands running over the weak hands
c) new money entering a bear market
d) none of the above

Answer 7

a) the major trend that we are observing

Question 8

What happens during a major downtrend?

a) The strong hands are bullish.
b) The weak hands can make money countertrend trading.
c) The strong hands will overwhelm the weak hands.
d) Both b and c.

Answer 8

d) Both b and c.