The Basics of Technical Analysis 10 Created on June 20, 2023 By Over1251 The Basics of Technical Analysis 1 / 10 Which of the following inspired the creation of technical analysis? Market expansion Hypothesis of an Efficient Market Markets are clear of speculation. Quantitative assessment 2 / 10 Downtrends are distinguished by: Lower peaks and lower troughs Lower lows and higher highs Bigger peaks and falls Prices are trading in a range with little upward movement. 3 / 10 A 3-month moving average is more likely to have _______ than a 9-month moving average. More false alarms Less prone to random noise Detection of late signals Delayed identification of trend reversal 4 / 10 Which of the following statements best defines a trend? Price oscillations that occur as a market approaches a theoretical equilibrium. A price movement in one direction that lasts long enough to be noticeable and lucrative. Prices tend to move in one direction for a length of time or trend when there are more buyers than sellers or more sellers than buyers. Variations in supply and demand throughout time 5 / 10 Uptrends are distinguished by: Troughs that are bigger Peaks on the horizontal Troughs at the bottom Peaks at the bottom 6 / 10 Which of the following causes has contributed to the criticism that technical analysis has slipped behind the times? The trading of huge blocks of shares has decreased. Separation of markets Technicians who are unwilling to rethink their instruments. Traders for the day 7 / 10 Which of the following is not a fundamental principle of technical analysis? Prices are chosen at random. Everything is reduced in price. Within trends, identifiable patterns emerge. Price is determined by supply and demand. 8 / 10 Which of the following claims is not a technical analysis assumption? The relationship between supply and demand determines prices. Everything is reduced in price. Prices are frequently in equilibrium. Prices are not at random. 9 / 10 Typically, trendlines are drawn as follows: Connecting price peaks when they are increasing and price troughs when they are declining Connecting the peaks when prices are increasing and the troughs when prices are dropping Connecting the peaks when prices rise and connect the peaks when prices decrease As a best-fit line for the majority of the price movement 10 / 10 Which of the following is not a fundamental approach of technical analysis? Investors cannot outperform the market because market prices are efficient. "The trend is on your side." "Don't give up." "Take care of your money." Your score isThe average score is 42% LinkedIn Facebook VKontakte 0% Restart quiz
