Question 1

Counterattack lines are formed when:

Options :

A :

a doji breaks a moving average

B :

a dumpling top fails with an abandoned baby pattern

C :

when opposite colored candles have the same close

D :

When same-colored candles have the same close

Answer: C

Question 2

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 3

How can one identify the existence of a cycle?

Options :

A : Remove price trend

B : Switch time frames

C : Use only period extremes

D : None of the above

Answer: A

Question 4

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

Question 5

Which of the following point and figure trading techniques limits risk compared to more basic trading rules?

Options :

A :

Buy or sell as soon as a new column is created on the chart

B :

Close out your trade on the second reversal back in the direction of the original signal

C :

Take small consistent profits, but allow large, windfall profitable positions to run

D :

Buy or sell on pullbacks after initial trade signal

Answer: D