Question 1

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 2

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 3

How might one detrend data to determine if a cycle exists?

Options :

A :

Divide the current prices by a moving average of those prices

B :

Create an oscillator that plots a standard deviation of the period lows

C :

Apply volume weighting to both high and lows in the data

D :

Plot a linear regression line through the data midpoin

Answer: A

Question 4

Which of the following are true of the concepts of divergence and confirmation in technical analysis

Options :

A :

They are opposite concepts

B :

Confirmation has a valid technical interpretation but in the case of divergence, no valid conclusion can be drawn

C :

Confirmation indicates a likely change in trend since all technical indicators are in agreement

D :

Divergence indicates continuation in trend since different technical indicators do not agree

Answer: A

Question 5

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