Sample Questions

Sample Questions
1. A Point and Figure chart:

a. Ignores time
b. Gives a clear picture of volume distribution
c. Is limited by a four-year time horizon
d. Cannot be used to project price targets
2. A Point and Figure chart differs from a bar chart as:

a. A new plot on a point and figure chart is made only when the price changes by a given amount
b. Time intervals are clearly shown in a point and figure chart
c. Point and figure charts are only concerned with measuring price momentum
d. A new plot on a bar chart is made only when the price changes by a given amount
3. Point and Figure charts display:

a. Daily high-low-close
b. Daily close reversals
c. Sequential reversals of price in unit increments
d. Daily price and volume data
4. Using intraday 1x1 Point and Figure charts, which breakout is most significant:
a. A breakout from a 5 column congestion zone
b. A breakout from a 10 column congestion zone
c. A breakout from a 15 column congestion zone
d. The breakouts are of equal significance
5. In constructing a Point and Figure chart, a new box is added only when
a. The price has moved by less than the specified box size
b. The price has moved by equal to or more than the specified box size
c. The volume confirms the price movement
d. The price has moved to a new high
Answers: 1.a., 2.a., 3.c., 4.c., 5.b.
Which of the following describes an equally weighted average?
a. An investor invests the same dollar amount in each security

b. Is adjusted by a divisor
c. Considers the market capitalization of each security in the average
d. Is the way the Dow Jones Industrial Average is calculated
Answer: a. An investor invests the same dollar amount in each security
Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete
Resource for Financial Market Technicians. Chapter 5.
A REASONABLE price objective once a stock has completed a head and shoulders pattern is
a. 100% of the previous trend

b. Derived using the Fibonacci Ratio
c. Equivalent to the distance between the head and neckline
d. Depends on the action of the accompanying volume
Answer: c. Equivalent to the distance between the head and neckline

Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th
Edition.Chapter 6.
A continuation pattern is
a. A pause in the prevailing trend

b. Usually a sideways price action
c. Usually a near term or intermediate term pattern
d. All of the above
Answer c. All of the above
Resource for Financial Market Technicians. Chapter 15
A symmetrical triangle is
a. Also called a coil

b. Usually a continuation pattern
c. A temporary pause in the existing trend
d. All of the above
Answer d. All of the above
The apex of a triangular pattern is
a. The point where two lines meet

b. A point that helps to time and measure the potency of the pattern
c. An important support or resistance level after the breakout occurs
d. All of the above
Volume should diminish during the price swings within a triangular pattern
a. True
b. False
c. Sometimes
d. Only on the downside swings
Answer a. True
The breakout from a triangle formation
a. Should take place with a sharp increase in volume

b. Should take place between two-thirds to three-fourths of the way through the pattern
c. Is a price level that immediately becomes support/resistance
d. All of the above
Answer: d. All of the above
The descending triangle is just a mirror image of the ascending triangle and is generally
considered a ______ pattern
a. Bullish
b. Bearish
c. Continuation
d. b and c
Answer d. b and c
All of the following are true of flag and pennant patterns EXCEPT
a. They are short term patterns completed in one to two weeks

b. They are preceded by sharp and nearly straight line moves
c. They are characterized by a decrease of volume during the formation of the pattern
d. They are reversal patterns
Answer d. They are reversal patterns
The measuring technique for MOST continuation patterns implies that a price objective
from the breakout point is equal to the ____ of the pattern at its broadest point
a. Width
b. Height
c. None of the above
d. 100% of prior trend
Answer b. Height
Reference: Pring, Martin J. Technical Analysis Explained. Chapter 5
The reversal pattern that can also appear as a continuation pattern is
a. Saucer
b. Head and shoulders
c. Spike
d. Double top
Answer b. Head and shoulders
Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th Edition.
Chapter 6
Stock traders rely heavily on
a. 4 and 92 day moving averages

b. 50 and 200 day moving averages
c. 30 and 40 week moving averages
d. b and c
Answer d. b and c
Reference: Pring, Martin J. Technical Analysis Explained. Chapter 9. Dahlquist, Julie R., and
Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market
Technicians. Chapter 14
The simple moving average
a. Gives equal weight to each periods price

b. Gives greater weight to the more recent price
c. Assigns greater weight to more recent data and includes all of the data in the life of the
instrument
d. None of the above
Answer a. Gives equal weight to each periods price
A Channel breakout system works extremely well in
a. Trending markets
b. Non-trending markets
c. Daily and weekly charts and monthly charts
d. a and c
Answer: d. a and c
The moving average
a. Follows the trend

b. Is a smoothing device
c. Lags market action
d. All of the above
Answer: d. All of the above
The “crossover method” refers to
a. Buying the same security high and selling it low twice in the same day
b. Taking the buy/sell recommendations of a fundamental analyst
c. A buy or sell signal generated when a shorter moving average
crosses a longer moving average
d. a and b
Answer c. A buy or sell signal generated when a shorter moving average

crosses a longer moving average
The most commonly used price to calculate the moving average is the
a. High
b. Low
c. Midpoint
d. Close
Answer d. Close
In a 10-day simple moving average, each day’s price is assigned a weighting of
a. 1%
b. 5%
c. 10%
d. 20%
Answer c. 10%
Which moving average(s) assign GREATER weight to the most recent data?
a. Simple
b. Weighted
c. Exponential
d. b and c
Answer d. b and c
Longer-term moving averages
a. Give fewer buy and sell signals

b. Are better at giving signals at major tops
c. “Give back” a lot more when the trend reverses
d. a and c
Answer d. a and c
Shorter moving averages
a. Produce more trades

b. Produce fewer whipsaws
c. a and b
Answer a. Produce more trades
To help confirm a price trend, volume should expand
a. On a reversal day
b. On a strong close
c. In the direction of the trend
d. When a price target is met
Answer c. In the direction of the trend
Volume divergence occurs when
a. Volume expands while open interest contracts

b. Volume expands while the daily trading range contracts
c. A new high in an uptrend takes place on declining volume
d. Volume declines during a sideways congestion pattern
Answer c. A new high in an uptrend takes place on declining volume
On a head and shoulders top, the “head” is typically made on
a. Active volume
b. Light volume
c. Breakout volume
d. Normal volume
Answer b. Light volume
Chapter 6
Volume in a head and shoulders pattern is HIGHEST where?
a. At the top of the head

b. At the completion of the head
c. During the right shoulder
d. During the left shoulder
Answer c. During the left shoulder
Chapter 6
Triangle price patterns should be accompanied by
a. Active volume within the pattern

b. Heavier volume in the direction of the eventual breakout
c. A gradual drop-off in volume until the breakout
d. No discernible difference in volume until after the breakout occurs
Answer c. A gradual drop-off in volume until the breakout
Technicians believe that
a. Price precedes volume

b. Volume precedes price
c. Volume and price are typically coincident indicators
d. Volume matters most during breakouts
Answer b. Volume precedes price
A selling climax
a. Typically occurs at a market top

b. Typically occurs at a market bottom
c. Is accompanied by average to low volume
d. Indicates new shorts getting trapped at the bottom
Answer b. Typically occurs at a market bottom
Open interest is
a. The number of contracts traded in a day

b. The number of outstanding contracts in any given day
c. The sum of total volume and open interest
Answer: b. The number of outstanding contracts in any given day
The primary use of candlestick patterns is to
a. Define the intermediate and short-term trends, but not the primary trend
b. Define the primary, intermediate, and short-term trends
c. Strengthen the possibility of a reversal or continuation of a price trend
d. Determine if you are in a bull market or a bear market
Answer c. Strengthen the possibility of a reversal or continuation of a price trend

Which is an example of candle pattern filtering?
a. Accepting only those patterns that fit the strict definition of their pattern
b. Accepting only those patterns that are confirmed by the intermediate trend
c. Using western techniques to confirm a candle pattern
d. Using cycles to confirm the existence of a pattern
Answer c. Using western techniques to confirm a candle pattern
Which tools could you use in candle pattern filtering?
a. Cycles
b. Point and Figure chart
c. RSI and MACD
d. Dow Theory
Answer c. RSI and MACD
The analysis of cycles provides
a. An objective determination of trend reversal

b. An indication of time duration of a trend
c. Relative strength of related price indices
d. An approximation of price support
Answer b. An indication of time duration of a trend
For a futures contract, daily volume represents
a. The dollar volume of the contracts traded

b. The cumulative price change for the day
c. The number of contracts traded during the day
d. The open interest at the end of the day
Answer c. The number of contracts traded during the day

Flow of fund analysis relies in part
a. On the sentiment of investment advisory services

b. On monthly price movements of the Dow Jones Industrial Average
c. On market volume statistics
d. On measuring the cash position of different investor groups
Answer: d. On measuring the cash position of different investor groups
A momentum index measures
a. Investor sentiment
b. Investor psychology
c. The rate of change of prices
d. Absolute volume level
Answer c. The rate of change of prices
A simple moving average
a. Is a cumulative breadth measure

b. Is constructed from various randomly selected interviews of retail investors
c. Seldom changes in value
d. Is constructed by totaling a set of data and dividing that total by the number of observations
Answer: d. Is constructed by totaling a set of data and dividing that total by the number of
observations
The objective of the Dow Theory is to determine
a. Changes in market psychology

b. The likelihood of volume reversals
c. The primary direction of the stock market
d. Timing of market bottoms
Answer c. The primary direction of the stock market

Oscillators are normally used to
a. Identify overbought or oversold market conditions

b. Identify price/volume divergences
c. Identify Elliott Wave cycles
d. Gauge differentials between buyers and sellers
Answer: a. Identify overbought or oversold market conditions
Resource for Financial Market Technicians. Chapters 8 and 18
Relative strength analysis, as applied in equity analysis relates
a. Volume changes to price changes

b. Unsophisticated investor behavior to price cycles
c. Changes in security prices in relation to other security prices, group price indices or market
action
d. Rate of price change of 4, 13 and 42 weeks
Answer c. Changes in security prices in relation to other security prices, group price indices or
market action
The resistance level of a price trend refers to
a. The level under the market where buying interest is

sufficiently strong to overcome selling pressure
b. The level over the market where selling pressure is
sufficiently strong to overcome buying pressure and a price advance is expected to be turned back
c. The boundaries of the trading range of the trend
d. The target price indicated by the count
Answer b. The level over the market where selling pressure is

sufficiently strong to overcome buying pressure and a price
advance is expected to be turned back
To measure an overbought or oversold market level, a technical analyst would normally

a. Look for moving average crossovers
b. Look for a series of exhaustion gaps
c. Use one or more price oscillators
d. Look for price and volume divergences
Answer d. Look for price and volume divergences
Accumulation normally occurs
a. Near a market bottom

b. Near a market top
c. In declining markets
d. After a completed trading range
Answer a. Near a market bottom
The Kondratieff cycle extends for a period of about
a. 13 weeks
b. 13 years
c. 54 weeks
d. 54 years
Answer d. 54 years
The Public/Specialist Short Sales Ratio is used as a tool that
a. Shows the difference between sophisticated money and unsophisticated money

b. Shows the growth in money flow produced by NYSE specialists
c. Measures contrary opinion
d. Has become obsolete due to derivative product trading
Answer: a. Shows the difference between sophisticated money and unsophisticated money
Blow-offs are identified
a. Near market bottoms

b. By observing a sharp rally in prices after a long advance accompanied by a sharp increase in
trading activity
c. By observing a sudden sharp drop in prices after a long decline accompanied by heavy trading
activity
d. Using techniques of cycle analysis
Answer b. By observing a sharp rally in prices after a long advance accompanied by a sharp
increase in trading activity
Edition.Chapter 10.1
A selling climax is identified
a. By observing converging cycle patterns

b. By observing divergence between market breadth and
volume
c. By observing sharply rising prices
Answer d. None of the above
Edition.Chapter 10.
A breakaway gap usually
a. Occurs during the accumulation phase of a market cycle

b. Signals the beginning of an important price move
c. Provides a major divergence signal
d. Occurs at the end of an important price move
Answer: b. Signals the beginning of an important price move
Edition.Chapter 12
Price cycles are normally measured by
a. Their amplitude
b. Their period
c. Their phase
d. All of the above
During a consolidation, price action normally

a. Reverses decisively in one direction on heavy volume
b. Moves within well defined neutral boundaries on moderate or less than moderate volume
c. Retraces one third of its previous price movement
d. Diverges from volume
Answer b. Moves within well defined neutral boundaries on moderate or less than moderate
volume
Chapters 8 & 9
Contrary opinion is usually
a. Ignored
b. Measured by observing price cycles and volume patterns
c. Considered to be a gauge of investor psychology
d. A bullish indicator
Answer c. Considered to be a gauge of investor psychology
Moving average crossovers can be used to indicate
a. Buy and sell signals

b. Positive relative strength
c. Negative volume
d. Trend divergence
Answer a. Buy and sell signals
Which of the following can be considered a sentiment indicator
a. Specialist Short Sales Ratio

b. Mutual Fund Cash/Asset Ratio
c. Odd Lot Purchase/Sales Ratio
d. All of the above
Resource for Financial Market Technicians Chapter 12
Speed resistance lines

a. Divide a trend in thirds
b. Measure the rate of ascent or descent of a trend
c. Are used to measure percentage retracements
d. All of the above
Chapter 12
An exhaustion gap is observed
a. In the beginning stage of a bear market

b. After prices have moved sideways for an extended period of time
c. Near the end of a major price move
d. With light trading volume
Answer c. Near the end of a major price move
On a daily bar chart
a. Each day’s price action is represented by a vertical bar; the daily high, low and close are plotted
b. Prices are plotted vertically, time horizontally
c. The price scale may be either arithmetic or logarithmic
d. All of the above
An appropriate time interval selection for a bar chart which is designed to show very long-
term trends would be
a. Daily
b. Weekly
c. Monthly
d. Annually
Answer c. Monthly
Risk can be defined as:

a. Variability of returns
b. Amount of loss per trade
c. Beta
d. All of the above
Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapter 2
A point & figure chart DIFFERS from a bar chart as
a. A new plot on a point and figure chart is made only when the price changes by a given amount
b. Time intervals are clearly shown in a point and figure chart
c. Point and figure charts are only concerned with measuring price momentum
d. A new plot on a bar chart is made only when the price changes by a given amount
Answer a. A new plot on a point and figure chart is made only when the price changes by a given
amount
In constructing a point and figure chart, a new box is added ONLY when
a. The price has moved by less than the specified box size
b. The price has moved by equal to or more than the specified box size
c. The volume confirms the price movement
d. The price has moved to a new high
Answer b. The price has moved by equal to or more than the specified box size
As the price unit of a reversal on a point and figure chart is decreased
a. Time analysis becomes more critical for interpretation

b. The detail of price movement graphically displayed is decreased
c. The detail of price movement graphically displayed is increased
d. The possibility of whipsaws decreases
Answer c. The detail of price movement graphically displayed is increased
The body of the candlestick line displays the relationship between:
a. The current session’s high and low

b. The current session’s close and the prior session’s close
c. The current session’s open and high
d. The current session’s open and close
Answer d. The current session’s open and close
The basic concept behind the use of a trendline is that
a. Price and volume tend to confirm each other

b. Prices rise and fall in cyclical patterns
c. Prices follow a natural rhythm
d. A trend in motion will remain in motion until it reverses
Answer d. A trend in motion will remain in motion until it reverses
Technical analysts generally believe
a. That trendline analysis cannot be applied to point and figure charts

b. A price close beyond the trendline is more significant than an intra-day penetration
c. Trendlines are useful for validation of price gaps
d. Price whipsaws can be avoided using trendlines
Answer b. A price close beyond the trendline is more significant than an intra-day penetration
In a head and shoulders pattern, volume usually
a. Is greatest in the middle leg

b. Increases with each successive peak
c. Decreases with each successive peak
d. Is constant throughout the pattern
Answer c. Decreases with each successive peak
A simple moving average is often criticized because
a. The most recent events are given extra weight

b. The entire price time series is used in its calculation
c. Equal weight is given to each point included in the calculation
d. It is difficult to calculate
Answer c. Equal weight is given to each point included in the calculation
An exponentially smoothed moving average
a. Excludes older price points in the calculation

b. Gives more weight to more recent observations
c. Cannot be plotted on a bar chart
Answer b. Gives more weight to more recent observations
Oscillators are used to alert the analyst to
a. Volume divergences
b. Continuation patterns
c. Extended rallies
d. Overbought or oversold price conditions
Answer d. Overbought or oversold price conditions
Resource for Financial Market Technicians. Chapters 8 and 18
All the following are momentum oscillators EXCEPT
a. Advance/decline line
b. Relative Strength Index (RSI)
c. Stochastics
d. Moving Average Convergence/Divergence (MACD)
Answer a. Advance/decline line
Most oscillators are constructed
a. So that the mid-point goes through zero

b. On a semi-logscale to highlight momentum
c. So that all points are positive in value
d. Without an upper boundary
Answer a. So that the mid-point goes through zero
Oscillators are MOST helpful to gauge price behavior in
a. Sharply rising markets

b. Sharply falling markets
c. Sharply rising and sharply falling markets
d. Non-trending markets where prices fluctuate in a well defined trading range
Answer d. Non-trending markets where prices fluctuate in a well defined trading range
Oscillators are MOST valuable when
a. They are confirmed by relative strength measures

b. They are accelerating in trend
c. Their value reaches an extreme reading near the upper or lower end of their boundaries
d. Evaluated using multiple moving averages
Answer c. Their value reaches an extreme reading near the upper or lower end of their boundaries
A typical momentum index is constructed by
a. Plotting the change in price between the beginning and end of a time interval
b. Plotting the difference in volume between the daily high price and the daily low price
c. Plotting cumulative price between two points
d. Connecting the boxes on a point and figure chart
Answer a. Plotting the change in price between the beginning and end of a time interval
Violated support levels typically
a. Become support levels as prices fall lower

b. Are associated with declining price projections
c. Become resistance levels on price bounces
d. Indicate an imminent price reversal
Answer c. Become resistance levels on price bounces
As with trendlines, speed resistance lines
a. Can be used in conjunction with sentiment indicators

b. Indicate the potential for immediate price reversals
c. Must be confirmed with volume
d. Reverse roles once they are broken
Answer d. Reverse roles once they are broken
Which pairs are not similar?
a. Stochastics = Williams
b. RSI = MACD
c. MACD = ROC
d. None are similar
Answer c. MACD = ROC
A rising relative strength line for a stock in a falling market indicates
a. That price and volume are diverging

b. That the stock is performing worse than the market
c. That the stock is performing better than the market
d. That the stock’s price is rising despite the falling market
Answer c. That the stock is performing better than the market
Which set of indicators would be MOST helpful in analyzing trading range markets?
a. Moving averages
b. Oscillators
c. Cycles
d. Elliott Wave
Answer b. Oscillators
The four year cycle, also known as the Presidential Cycle, realizes the best returns in the
stock market to be
a. Election and pre-election

b. Mid-term and election
c. Pre-election and post election
d. Post election and mid-term
Answer a. Election and pre-election
Which of the following indicators are used to measure market breadth?
a. Cumulative breadth line

b. Advance/decline ratio
c. McClellan oscillator
d. All of the above
Which of the following is NOT an underlying assumption of technical analysis?
a. Prices move in trends

b. Price discounts everything
c. The consensus is always wrong
d. Supply and demand determines price
Answer c. The consensus is always wrong
Which of the following would NOT be considered a means of identifying a trend?
a. Regression lines
b. Trendlines
c. Relative strength lines
d. Moving averages
Answer: c. Relative strength lines
When a stock breaks through the bottom of a down sloping standard deviation channel
(around a regression line)
a. The stock is oversold

b. An acceleration of the trend may be about to occur
c. It is at the limits of normal distribution
d. Any of the above
Answer: d. Any of the above
Moving averages tend to change direction well after a peak or trough in price and therefore
are considered “late” in changing direction. Which of the following is generally considered
the MOST effective way to offset this tendency to lag?
a. Using a weighted moving average

b. Using an unweighted moving average
c. Using moving average crossovers
Answer a. Using a weighted moving average
A descending triangle that forms in a downtrend would probably be considered a
a. Reversal pattern
b. Continuation pattern
c. Either a or b
d. Probably wouldn’t be useful in forecasting the future direction of the trend
Answer b. Continuation pattern
Which of the following is NOT true about volume?
a. A rally that develops on declining volume is suspect

b. A rally that occurs on rising volume points to a probable trend reversal
c. Both price and volume can fall off sharply after a buying climax
d. A downside break of a moving average or trendline should occur on heavy volume to qualify as
a bearish signal
Answer b. A rally that occurs on rising volume points to a probable trend reversal
Reference: Pring, Martin J. Technical Analysis Explained. Chapters 22-23
Which of the following is LEAST reliable?
a. Triangles
b. Wedges
c. Broadening Formations
d. Pennants
Answer a. Triangles
Which of the following is LEAST true of a doji pattern?
a. It represents indecision
b. It is usually a continuation pattern
c. It is usually a reversal pattern
d. The opening and closing prices are at identical levels
Answer b. It is usually a continuation pattern
The January Effect is:
a. As the S&P goes in January, so goes the year

b. When small cap stocks are more likely to outperform the market
c. Has not worked well in recent years
d. B and C
Answer d. B and C
In a 10-day rate of change indicator, if the latest (more recent) price is higher than the price
10 days ago
a. The ratio would be greater than zero

b. The ratio would be less than zero
c. The ratio would be equal to zero
d. The ratio would hold at a constant until the market changed trend
Answer a. The ratio would be greater than zero
An extreme overbought reading on a momentum indicator in the early stages of a rally
a. Shows that the market is ready to correct

b. Indicates that the rally is strong and will probably carry further
c. Is a clear indication that the pace of the rally is about to slow down
d. Is a clear indication that the pace of the rally is about to accelerate
Answer b. Indicates that the rally is strong and will probably carry further
Which statement is true of an uptrending market?
a. Momentum indicators will tend to hit greater oversold extremes

b. Momentum indicators will tend to stay overbought longer
c. Momentum indicators will tend to hit greater overbought extremes than in a downtrending
market
d. b and c
Answer d. b and c
Which would normally be considered a sentiment indicator that is MOST useful to traders?
a. Corporate buy backs

b. Price/earnings ratios
c. Insider buying
d. Put/call ratios
Answer d. Put/call ratios
Which type of chart is usually considered BEST suited for establishing price targets based on
a horizontal measurement?
a. Line charts
b. Daily bar charts
c. Point and figure charts
d. Candlestick charts
Answer c. Point and figure charts
Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapters 1-2
Contrary opinion is a useful investment tool because
a. The “little guy” is always wrong

b. Traders are often most bearish near market tops
c. Institutional investors have access to better information
d. It is at turning points where people are wrong
Answer d. It is at turning points where people are wrong
The longest-term trend in the market is the
a. Primary
b. Cyclical
c. Secular
Answer c. Secular
Resource for Financial Market Technicians Chapter 21

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1. A Point and Figure chart:

2. A Point and Figure chart differs from a bar chart as:

3. Point and Figure charts display:

Answers: 1.a., 2.a., 3.c., 4.c., 5.b.

Which of the following describes an equally weighted average?

a. An investor invests the same dollar amount in each security

Answer: a. An investor invests the same dollar amount in each security

a. 100% of the previous trend

Answer: c. Equivalent to the distance between the head and neckline

a. A pause in the prevailing trend

Answer c. All of the above

a. Also called a coil

Answer d. All of the above

The apex of a triangular pattern is

a. The point where two lines meet

Answer d. All of the above

The breakout from a triangle formation

a. Should take place with a sharp increase in volume

Answer: d. All of the above

a. They are short term patterns completed in one to two weeks

Answer d. They are reversal patterns

Reference: Pring, Martin J. Technical Analysis Explained. Chapter 5

The reversal pattern that can also appear as a continuation pattern is

Answer b. Head and shoulders

Stock traders rely heavily on

a. 4 and 92 day moving averages

The simple moving average

a. Gives equal weight to each periods price

Answer a. Gives equal weight to each periods price

A Channel breakout system works extremely well in

The moving average

a. Follows the trend

Answer: d. All of the above

The “crossover method” refers to

Answer c. A buy or sell signal generated when a shorter moving average

In a 10-day simple moving average, each day’s price is assigned a weighting of

Longer-term moving averages

a. Give fewer buy and sell signals

Shorter moving averages

a. Produce more trades

Answer a. Produce more trades

To help confirm a price trend, volume should expand

Answer c. In the direction of the trend

Reference: Pring, Martin J. Technical Analysis Explained. Chapter 5

Volume divergence occurs when

a. Volume expands while open interest contracts

Answer c. A new high in an uptrend takes place on declining volume

Reference: Pring, Martin J. Technical Analysis Explained. Chapter 23

On a head and shoulders top, the “head” is typically made on

Answer b. Light volume

Volume in a head and shoulders pattern is HIGHEST where?

a. At the top of the head

Answer c. During the left shoulder

Triangle price patterns should be accompanied by

a. Active volume within the pattern

Technicians believe that

a. Price precedes volume

Answer b. Volume precedes price

Reference: Pring, Martin J. Technical Analysis Explained. Chapter 5

a. Typically occurs at a market top

Answer b. Typically occurs at a market bottom

Reference: Pring, Martin J. Technical Analysis Explained. Chapter 22