Question 1

Which of the following is true of the separating lines pattern?

Options :

A :

The top of the upper shadow of one candle is at the same price as the bottom of the lower shadow of the other candle

B :

The opening price of the second candle equals the opening price of the first candle

C :

The two candles have the same color

D :

It is a reversal pattern

Answer: B

Question 2

This chart type integrates volume directly into the price bar:

Options :

A :

Equivolume

B :

VWOP

C :

Renko

D :

Ichimoku Cloud

Answer: A

Question 3

Which of the following is the BEST volume indicator for analysis of futures trading?

Options :

A :

Open interest

B :

Contract volume

C : Total volume

D : Breadth

Answer: C

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