Question 1

Reversals in point and figure charts:

Options :

A :

Are set by convention as all point and figure charts have the same reversals

B :

Depend on the investment time horizon of the holder

C :

Can change within the same chart

D :

Should be less than a week

Answer: B

Question 2

Which of the following is one of the advantages of computerized trading systems?

Options :

A :

Computerized trend following systems are profitable in all types of markets

B :

Computerized systems improve the interpretation of complex trading patterns

C :

Computerized trading systems remove the human emotion element

D :

All of the above

Answer: C

Question 3

Which of the following is NOT true in chart interpretation:

Options :

A :

A price chart is a representation of human behavior

B :

The goal is to find consistent, reliable and logical patterns

C :

Chart patterns can be caused by commonly used trading techniques

D :

The behavioral aspects of prices are irrational

Answer: D

Question 4

Which of the following are the three basic tenets of Elliott Wave Theory, in the CORRECT order of importance?

Options :

A :

Price, momentum and volume

B :

Price, pattern and volume

C :

Waves, alternation and reversals

D :

Pattern, ratio and time

Answer: D

Question 5

Which of the following is true of Bollinger Bands?

Options :

A :

The bands are based on the moving averages of prices

B :

The bands are based on moving averages of prices plus or minus a standard deviation factor

C :

When price equals the upper band it is considered bullish

D :

When prices are above the upper band they are considered to be in oversold territory

Answer: B