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	Cycles are GENERALLY measureda. A.High to low b. Low to low c. High to high d. Either b or c	Low to low Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 19.
	This cycle principle states as stocks go through similar cycles, the size and magnitude will differ. a. Commonality b. Variation c. Summation d. Proportionality	Variation Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 19.
	In regards to cycle analysis, translation is: a. Distance between troughs b. Distance between peaks c. Useful in checking where the trend direction is headed or if it is changing d. To the left when the peak is beyond the halfway point	Useful in checking where the trend direction is headed or if it is changing Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 19.
	Which would be the MOST useful aspect of a cycle in studying the relationship between cycles of different lengths? a. Phase b. Period c. Amplitude d. None of the above	Phase Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 19.
	A complete Elliott wave cycle is made up of how many waves? a. 5 b. 3 c. 8 d. 13	8 Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 20.
	When analyzing long term price movements, it could be helpful to use which type of chart? a. Candle chart b. Logarithmic chart c. Bar chart d. Point and figure chart	Logarithmic chart Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 11.
	In a normal 5-wave Elliott impulse wave, which wave is USUALLY expected to be the longest and most dynamic? a. 3rd b. 5th c. 1st d. 1st but sometimes 3rd	3rd Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 20.
	Which of the following would MOST likely be a continuation pattern? a. Engulfing pattern b. Head and shoulders c. Double bottom d. Flag	Flag Technical Analysis of Stock Trends, 9th Edition. Chapter 11.
	Which of the following would NOT be considered a support level? a. Previous high b. Previous low c. Trading range d. All the above are considered to be support levels	Previous high b. Previous low c. Trading range d. All the above are considered to be support levels Technical Analysis of Stock Trends, 9th Edition. Chapter 13.
	According to Robert Rhea's hypotheses: I. The primary trend is inviolate II. The averages discount everything III. Dow Theory is not infallible IV. Dow Theory is predictable	I, II, and III Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 6.
	For a breakout or breakdown from a triangle to be considered valid it should occur NO MORE than _______ of the distance to the apex from the beginning of the pattern? a. One-half b. Two-thirds c. Three-quarters d. Five-sixths	Answer: c. Three-quarters Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 15.
	What is indicated when Bollinger Bands narrow? a. A stock is ready for a rally b. A stock is ready for a decline c. A stock's volatility has increased d. A stock's volatility has decreased	Answer: d. A stock's volatility has decreased Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 14.
	In the Dow Theory, the MOST important price is the a. Open b. High c. Low d. Close	Answer: d. Close Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 6.
	Which is/are considered important in determining the validity of a trendline break? a. Time b. Price c. Volume d. All the above	Answer: d. All the above Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 13.
	Which BEST characterizes continuation patterns? a. There is sideways price action b. They take a long time to form c. They usually represent long-term patterns d. They signal the start of a new trend	Answer: a. There is sideways price action Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 17.
	Which is NOT true of a buying climax? a. Prices fall sharply at first b. Volume is very heavy c. The close is near the low end of the daily range d. Prices initially rise sharply	Answer: a. Prices fall sharply at first Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 15.
	In order for a Dow Theory sell signal to be confirmed a. The Dow Jones Industrials (DJI) and the Dow Transports (DJT) must peak simultaneously b. The DJI and DJT must fail to confirm at the highs c. Both the DJI and DJT must break below an important intermediate term support level d. b and c	Answer: d. b and c Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 6.
	The Dow Theory uses ONLY a. High prices b. Low prices c. Closing prices d. All of the above	Answer: c. Closing prices Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 6.
	A company whose stock is in a well-established uptrend reports earnings slightly above consensus estimates. After an initial rally, the stock then ends lower on the day. This would PROBABLY be an example of... a. Investor ennui b. Market discounting c. Unrealistic expectations d. A short-coming of fundamental analysis	Answer: b. Market discounting Reference: Pring, Martin J. Technical Analysis Explained. Chapter 26.
	Point and figure charts are LEAST suited to a. Establishing targets b. Identifying areas of accumulation or distribution c. Identifying areas of support and resistance d. Identifying breakouts b. Identifying areas of accumulation or distribution	Answer: b. Market discounting Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapter 1
	In a doji candlestick a. Supply exceeds demand b. Demand exceeds supply c. Supply and demand are in balance d. All the above	Answer: c. Supply and demand are in balance Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 17.
	Which of the following IS a Fibonacci ratio? a. 50% b. 75% c. 33% d. 66%	Answer: a. 50% Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 20.
	When using a moving average crossover system to generate buy/sell signals, a SELL signal would be generated when a. The slower moving average falls below the faster average b. The slow rises above the fast c. The fast falls below the slow d. Either a or c	Answer: c. The fast falls below the slow Reference: Pring, Martin J. Technical Analysis Explained. Chapter 9.
	Moving averages are of LEAST use in generating buy or sell signals in a. A sideways trend b. A moderately sloping uptrend c. A steep downtrend d. Not especially useful in any of them	Answer: a. A sideways trend Reference: Pring, Martin J. Technical Analysis Explained. Chapter 9.
	A stock trades in a range between 51 and 55 for 10 days and then moves higher. If you have been charting the stock with a 3 box reversal point and figure chart, with 2 points assigned per box, what would the horizontal count be? a. 30 points b. 10 points c. 60 points d. There would be no count	Answer: d. There would be no count Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapter 4.
	On balance volume is USEFUL to a. Confirm price b. Spot divergence c. Clarify volume trends d. All the above	Answer: d. All the above Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapter 4.
	Common filters used to confirm a trendline break INCLUDE a. Penetration above/below the trendline by a set percentage b. A pre-defined period of time during which prices stay above/ below the trendline c. A close above/below the trendline d. All the above	Answer: d. All the above Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 13.
	As a general rule, in rectangle, triangle, flag and pennant patterns, volume GENERALLY a. Increases as the pattern develops b. Decreases as the pattern develops c. Stays constant as the pattern develops d. Shows signs of accumulation	Answer: b. Decreases as the pattern develops Reference: Pring, Martin J. Technical Analysis Explained. Chapter 5.
	Which type of gap is LEAST likely to be filled when it occurs with high volume? a. Common b. Breakaway c. Exhaustion d. Runaway	Answer: b. Breakaway Reference: Pring, Martin J. Technical Analysis Explained. Chapter 6.
	Which of the following percentage parameters is NOT a widely recognized percentage retracement? a. 66% b. 45% c. 50% d. 33%	Answer: b. 45% Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 13.
	What is intermarket analysis? a. Study of the interrelationships between the various independent financial markets b. Study of the internals of the various financial markets c. Study of the various international financial markets and how they influence each other d. None of the above	Answer: a. Study of the interrelationships between the various independent financial markets Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 21.
	The secondary trend is measured in __________, and the intermediate trend is measured in __________. a. Months or years; days or weeks b. Weeks or months; weeks or months c. Days or weeks; intraday minutes d. Intraday minutes; weeks and months	Answer: b. Weeks or months; weeks or months Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 6.
	How would you use relative strength analysis when comparing sectors? a. Compare RSIs - the higher the number, the more bullish the sector b. Divide the price of one sector by another and compare c. Divide the price of one sector by an industry benchmark and compare d. We don't compare sectors, we compare industry groups	Answer: c. Divide the price of one sector by an industry benchmark and compare Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 21.
	To INCREASE the sensitivity of a 5 x 3 point and figure chart, one would a. Increase the box size b. Decrease the box size c. Increase the number of boxes needed for a reversal d. Both a and c	Answer: b. Decrease the box size Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapter 2.
	In point and figure charting, the ability to obtain price objectives through use of the horizontal count is a principal advantage of the a. One box reversal chart b. Three box reversal chart c. Five box reversal chart d. All of the above	Answer: a. One box reversal chart Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapter 4.
	In what charting technique will trendlines ONLY be drawn at 45 degree angles? a. Bar charts b. Candlestick charts c. Swing charts d. Simplified three box point and figure charts	Answer: d. Simplified three box point and figure charts Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapter 3.
	What pattern is found in point and figure charts? a. Doji b. Head and shoulders c. Island reversal d. All of the above	Answer: b. Head and shoulders Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapter 4.
	Using intraday 1x1 point and figure charts, which breakout is MOST significant? a. A breakout from a 5 column congestion zone b. A breakout from a 10 column congestion zone c. A breakout from a 15 column congestion zone d. The breakouts are of equal significance	Answer: c. A breakout from a 15 column congestion zone Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapter 1.
	Cycles are USUALLY measured from a. Crest to crest b. Trough to trough c. Wheel to wheel d. Curl to curl	Answer: b. Trough to trough Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 19.
	The following is NOT common of reversal patterns a. The existence of a prior trend b. The larger the pattern the greater the subsequent move c. Tops usually take longer to form than bottoms d. The break of a major trendline	Answer: c. Tops usually take longer to form than bottoms Reference: Edwards, Robert D. and Magee, John, Technical Analysis of Stock Trends, 9th Edition. Chapter 6.
	An inverse head and shoulders pattern is a. A topping pattern b. Generally unreliable c. A reversal pattern d. a and b	Answer: c. A reversal pattern Reference: Edwards, Robert D. and Magee, John, Technical Analysis of Stock Trends, 9th Edition. Chapter 6.
	The MAXIMUM objective of reversal patterns is a. 50% retracement b. 66% retracement c. .618 of the current price d. 100% retracement	Answer: d. 100% retracement Reference: Edwards, Robert D. and Magee, John, Technical Analysis of Stock Trends, 9th Edition. Chapter 6.
	Which is TRUE of double tops a. There are two identifiable peaks at very different price levels b. Volume is lighter during the first peak c. They often occur at market bottoms d. Height is often used as a measuring objective	Answer: d. Height is often used as a measuring objective
	Which of the following describes an equally weighted average? a. An investor invests the same dollar amount in each security b. Is adjusted by a divisor c. Considers the market capitalization of each security in the average d. Is the way the Dow Jones Industrial Average is calculated	Answer: a. An investor invests the same dollar amount in each security Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 5.
	A REASONABLE price objective once a stock has completed a head and shoulders pattern is a. 100% of the previous trend b. Derived using the Fibonacci Ratio c. Equivalent to the distance between the head and neckline d. Depends on the action of the accompanying volume	Answer: c. Equivalent to the distance between the head and neckline Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th Edition.Chapter 6.
	A continuation pattern is a. A pause in the prevailing trend b. Usually a sideways price action c. Usually a near term or intermediate term pattern d. All of the above	Answer d. All of the above Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 15
	A symmetrical triangle is a. Also called a coil b. Usually a continuation pattern c. A temporary pause in the existing trend d. All of the above	Answer d. All of the above Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 15
	The apex of a triangular pattern is a. The point where two lines meet b. A point that helps to time and measure the potency of the pattern c. An important support or resistance level after the breakout occurs d. All of the above	Answer d. All of the above Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 15
	Volume should diminish during the price swings within a triangular pattern a. True b. False c. Sometimes d. Only on the downside swings	Answer a. True Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 15
	The breakout from a triangle formation a. Should take place with a sharp increase in volume b. Should take place between two-thirds to three-fourths of the way through the pattern c. Is a price level that immediately becomes support/resistance d. All of the above	Answer: d. All of the above Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 15
	The descending triangle is just a mirror image of the ascending triangle and is generally considered a ______ pattern a. Bullish b. Bearish c. Continuation d. b and c	Answer d. b and c Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 15
	All of the following are true of flag and pennant patterns EXCEPT a. They are short term patterns completed in one to two weeks b. They are preceded by sharp and nearly straight line moves c. They are characterized by a decrease of volume during the formation of the pattern d. They are reversal patterns	Answer d. They are reversal patterns Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 5
	The measuring technique for MOST continuation patterns implies that a price objective from the breakout point is equal to the ____ of the pattern at its broadest point a. Width b. Height c. None of the above d. 100% of prior trend	Answer b. Height Reference: Pring, Martin J. Technical Analysis Explained. Chapter 5
	The reversal pattern that can also appear as a continuation pattern is a. Saucer b. Head and shoulders c. Spike d. Double top	Answer b. Head and shoulders Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th Edition. Chapter 6
	Stock traders rely heavily on a. 4 and 92 day moving averages b. 50 and 200 day moving averages c. 30 and 40 week moving averages d. b and c	Answer d. b and c Reference: Pring, Martin J. Technical Analysis Explained. Chapter 9. Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 14
	The simple moving average a. Gives equal weight to each periods price b. Gives greater weight to the more recent price c. Assigns greater weight to more recent data and includes all of the data in the life of the instrument d. None of the above	Answer a. Gives equal weight to each periods price Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 14
	A Channel breakout system works extremely well in a. Trending markets b. Non-trending markets c. Daily and weekly charts and monthly charts d. a and c	Answer: d. a and c Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 12
	The moving average a. Follows the trend b. Is a smoothing device c. Lags market action d. All of the above	Answer: d. All of the above Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 14
	The “crossover method” refers to a. Buying the same security high and selling it low twice in the same day b. Taking the buy/sell recommendations of a fundamental analyst c. A buy or sell signal generated when a shorter moving average crosses a longer moving average d. a and b	Answer c. A buy or sell signal generated when a shorter moving average crosses a longer moving average Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 14
	The most commonly used price to calculate the moving average is the a. High b. Low c. Midpoint d. Close	Answer d. Close Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 14
	In a 10-day simple moving average, each day’s price is assigned a weighting of a. 1% b. 5% c. 10% d. 20%	Answer c. 10% Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 14
	Which moving average(s) assign GREATER weight to the most recent data? a. Simple b. Weighted c. Exponential d. b and c	Answer d. b and c Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 14
	Longer-term moving averages a. Give fewer buy and sell signals b. Are better at giving signals at major tops c. “Give back” a lot more when the trend reverses d. a and c	Answer d. a and c Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 14
	Shorter moving averages a. Produce more trades b. Produce fewer whipsaws c. a and b d. None of the above	Answer a. Produce more trades Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 14
	To help confirm a price trend, volume should expand a. On a reversal day b. On a strong close c. In the direction of the trend d. When a price target is met	Answer c. In the direction of the trend Reference: Pring, Martin J. Technical Analysis Explained. Chapter 5
	Volume divergence occurs when a. Volume expands while open interest contracts b. Volume expands while the daily trading range contracts c. A new high in an uptrend takes place on declining volume d. Volume declines during a sideways congestion pattern	Answer c. A new high in an uptrend takes place on declining volume Reference: Pring, Martin J. Technical Analysis Explained. Chapter 23
	On a head and shoulders top, the “head” is typically made on a. Active volume b. Light volume c. Breakout volume d. Normal volume	Answer b. Light volume Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th Edition. Chapter 6
	Volume in a head and shoulders pattern is HIGHEST where? a. At the top of the head b. At the completion of the head c. During the right shoulder d. During the left shoulder	Answer d. During the left shoulder Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th Edition. Chapter 6
	Triangle price patterns should be accompanied by a. Active volume within the pattern b. Heavier volume in the direction of the eventual breakout c. A gradual drop-off in volume until the breakout d. No discernible difference in volume until after the breakout occurs	Answer c. A gradual drop-off in volume until the breakout Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 15
	Technicians believe that a. Price precedes volume b. Volume precedes price c. Volume and price are typically coincident indicators d. Volume matters most during breakouts	Answer b. Volume precedes price Reference: Pring, Martin J. Technical Analysis Explained. Chapter 5
	A selling climax a. Typically occurs at a market top b. Typically occurs at a market bottom c. Is accompanied by average to low volume d. Indicates new shorts getting trapped at the bottom	Answer b. Typically occurs at a market bottom Reference: Pring, Martin J. Technical Analysis Explained. Chapter 22
	Open interest is a. The number of contracts traded in a day b. The number of outstanding contracts in any given day c. The sum of total volume and open interest d. None of the above	Answer: b. The number of outstanding contracts in any given day Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	The primary use of candlestick patterns is to a. Define the intermediate and short-term trends, but not the primary trend b. Define the primary, intermediate, and short-term trends c. Strengthen the possibility of a reversal or continuation of a price trend d. Determine if you are in a bull market or a bear market	Answer c. Strengthen the possibility of a reversal or continuation of a price trend Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 17
	Which is an example of candle pattern filtering? a. Accepting only those patterns that fit the strict definition of their pattern b. Accepting only those patterns that are confirmed by the intermediate trend c. Using western techniques to confirm a candle pattern d. Using cycles to confirm the existence of a pattern	Answer c. Using western techniques to confirm a candle pattern Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 11
	Which tools could you use in candle pattern filtering? a. Cycles b. Point and Figure chart c. RSI and MACD d. Dow Theory	Answer c. RSI and MACD Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 17
	The analysis of cycles provides a. An objective determination of trend reversal b. An indication of time duration of a trend c. Relative strength of related price indices d. An approximation of price support	Answer b. An indication of time duration of a trend Reference: Pring, Martin J. Technical Analysis Explained. Chapter 21
	For a futures contract, daily volume represents a. The dollar volume of the contracts traded b. The cumulative price change for the day c. The number of contracts traded during the day d. The open interest at the end of the day	Answer c. The number of contracts traded during the day Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	Flow of fund analysis relies in part a. On the sentiment of investment advisory services b. On monthly price movements of the Dow Jones Industrial Average c. On market volume statistics d. On measuring the cash position of different investor groups	Answer: d. On measuring the cash position of different investor groups Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 10
	A momentum index measures a. Investor sentiment b. Investor psychology c. The rate of change of prices d. Absolute volume level	Answer c. The rate of change of prices Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	A simple moving average a. Is a cumulative breadth measure b. Is constructed from various randomly selected interviews of retail investors c. Seldom changes in value d. Is constructed by totaling a set of data and dividing that total by the number of observations	Answer: d. Is constructed by totaling a set of data and dividing that total by the number of observations Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 1
	The objective of the Dow Theory is to determine a. Changes in market psychology b. The likelihood of volume reversals c. The primary direction of the stock market d. Timing of market bottoms	Answer c. The primary direction of the stock market Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 6
	Oscillators are normally used to a. Identify overbought or oversold market conditions b. Identify price/volume divergences c. Identify Elliott Wave cycles d. Gauge differentials between buyers and sellers	Answer: a. Identify overbought or oversold market conditions Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapters 8 and 18
	Relative strength analysis, as applied in equity analysis relates a. Volume changes to price changes b. Unsophisticated investor behavior to price cycles c. Changes in security prices in relation to other security prices, group price indices or market action d. Rate of price change of 4, 13 and 42 weeks	Answer c. Changes in security prices in relation to other security prices, group price indices or market action Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	The resistance level of a price trend refers to a. The level under the market where buying interest is sufficiently strong to overcome selling pressure b. The level over the market where selling pressure is sufficiently strong to overcome buying pressure and a price advance is expected to be turned back c. The boundaries of the trading range of the trend d. The target price indicated by the count	Answer b. The level over the market where selling pressure is sufficiently strong to overcome buying pressure and a price advance is expected to be turned back Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 12
	To measure an overbought or oversold market level, a technical analyst would normally a. Look for moving average crossovers b. Look for a series of exhaustion gaps c. Use one or more price oscillators d. Look for price and volume divergences	Answer d. Look for price and volume divergences Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	Accumulation normally occurs a. Near a market bottom b. Near a market top c. In declining markets d. After a completed trading range	Answer a. Near a market bottom Reference: Pring, Martin J. Technical Analysis Explained. Chapter
	The Kondratieff cycle extends for a period of about a. 13 weeks b. 13 years c. 54 weeks d. 54 years	Answer d. 54 years Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 19
	The Public/Specialist Short Sales Ratio is used as a tool that a. Shows the difference between sophisticated money and unsophisticated money b. Shows the growth in money flow produced by NYSE specialists c. Measures contrary opinion d. Has become obsolete due to derivative product trading	Answer: a. Shows the difference between sophisticated money and unsophisticated money Reference: Pring, Martin J. Technical Analysis Explained. Chapter 26
	Blow-offs are identified a. Near market bottoms b. By observing a sharp rally in prices after a long advance accompanied by a sharp increase in trading activity c. By observing a sudden sharp drop in prices after a long decline accompanied by heavy trading activity d. Using techniques of cycle analysis	Answer b. By observing a sharp rally in prices after a long advance accompanied by a sharp increase in trading activity Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th Edition.Chapter 10.1
	A selling climax is identified a. By observing converging cycle patterns b. By observing divergence between market breadth and volume c. By observing sharply rising prices d. None of the above	Answer d. None of the above Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th Edition.Chapter 10.
	A breakaway gap usually a. Occurs during the accumulation phase of a market cycle b. Signals the beginning of an important price move c. Provides a major divergence signal d. Occurs at the end of an important price move	Answer: b. Signals the beginning of an important price move Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th Edition.Chapter 12
	Price cycles are normally measured by a. Their amplitude b. Their period c. Their phase d. All of the above	Answer d. All of the above Reference: Pring, Martin J. Technical Analysis Explained. Chapter 21
	During a consolidation, price action normally a. Reverses decisively in one direction on heavy volume b. Moves within well defined neutral boundaries on moderate or less than moderate volume c. Retraces one third of its previous price movement d. Diverges from volume	Answer b. Moves within well defined neutral boundaries on moderate or less than moderate volume Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th Edition. Chapters 8 & 9
	Contrary opinion is usually a. Ignored b. Measured by observing price cycles and volume patterns c. Considered to be a gauge of investor psychology d. A bullish indicator	Answer c. Considered to be a gauge of investor psychology Reference: Pring, Martin J. Technical Analysis Explained. Chapter 26
	Moving average crossovers can be used to indicate a. Buy and sell signals b. Positive relative strength c. Negative volume d. Trend divergence	Answer a. Buy and sell signals Reference: Pring, Martin J. Technical Analysis Explained. Chapter 9
	Which of the following can be considered a sentiment indicator a. Specialist Short Sales Ratio b. Mutual Fund Cash/Asset Ratio c. Odd Lot Purchase/Sales Ratio d. All of the above	Answer d. All of the above Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians Chapter 12
	Speed resistance lines a. Divide a trend in thirds b. Measure the rate of ascent or descent of a trend c. Are used to measure percentage retracements d. All of the above	Answer d. All of the above Reference: Edwards, Robert D. and Magee, John. Technical Analysis of Stock Trends, 9th Edition. Chapter 12
	An exhaustion gap is observed a. In the beginning stage of a bear market b. After prices have moved sideways for an extended period of time c. Near the end of a major price move d. With light trading volume	Answer c. Near the end of a major price move Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 11
	On a daily bar chart a. Each day’s price action is represented by a vertical bar; the daily high, low and close are plotted b. Prices are plotted vertically, time horizontally c. The price scale may be either arithmetic or logarithmic d. All of the above	Answer d. All of the above Reference: Pring, Martin J. Technical Analysis Explained. Chapter 10
	An appropriate time interval selection for a bar chart which is designed to show very long-term trends would be a. Daily b. Weekly c. Monthly d. Annually	Answer c. Monthly Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 23
	Risk can be defined as: a. Variability of returns b. Amount of loss per trade c. Beta d. All of the above	Answer d. All of the above Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapter 2
	A point & figure chart DIFFERS from a bar chart as a. A new plot on a point and figure chart is made only when the price changes by a given amount b. Time intervals are clearly shown in a point and figure chart c. Point and figure charts are only concerned with measuring price momentum d. A new plot on a bar chart is made only when the price changes by a given amount	Answer a. A new plot on a point and figure chart is made only when the price changes by a given amount Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapter 2
	In constructing a point and figure chart, a new box is added ONLY when a. The price has moved by less than the specified box size b. The price has moved by equal to or more than the specified box size c. The volume confirms the price movement d. The price has moved to a new high	Answer b. The price has moved by equal to or more than the specified box size Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapter 2
	As the price unit of a reversal on a point and figure chart is decreased a. Time analysis becomes more critical for interpretation b. The detail of price movement graphically displayed is decreased c. The detail of price movement graphically displayed is increased d. The possibility of whipsaws decreases	Answer c. The detail of price movement graphically displayed is increased Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 17
	The body of the candlestick line displays the relationship between: a. The current session’s high and low b. The current session’s close and the prior session’s close c. The current session’s open and high d. The current session’s open and close	Answer d. The current session’s open and close Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 17
	The basic concept behind the use of a trendline is that a. Price and volume tend to confirm each other b. Prices rise and fall in cyclical patterns c. Prices follow a natural rhythm d. A trend in motion will remain in motion until it reverses	Answer d. A trend in motion will remain in motion until it reverses Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 2
	Technical analysts generally believe a. That trendline analysis cannot be applied to point and figure charts b. A price close beyond the trendline is more significant than an intra-day penetration c. Trendlines are useful for validation of price gaps d. Price whipsaws can be avoided using trendlines	Answer b. A price close beyond the trendline is more significant than an intra-day penetration Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 2
	In a head and shoulders pattern, volume usually a. Is greatest in the middle leg b. Increases with each successive peak c. Decreases with each successive peak d. Is constant throughout the pattern	Answer c. Decreases with each successive peak Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 15
	A simple moving average is often criticized because a. The most recent events are given extra weight b. The entire price time series is used in its calculation c. Equal weight is given to each point included in the calculation d. It is difficult to calculate	Answer c. Equal weight is given to each point included in the calculation Reference: Pring, Martin J. Technical Analysis Explained. Chapter 9
	An exponentially smoothed moving average a. Excludes older price points in the calculation b. Gives more weight to more recent observations c. Cannot be plotted on a bar chart d. None of the above	Answer b. Gives more weight to more recent observations Reference: Pring, Martin J. Technical Analysis Explained. Chapter 9
	Oscillators are used to alert the analyst to a. Volume divergences b. Continuation patterns c. Extended rallies d. Overbought or oversold price conditions	Answer d. Overbought or oversold price conditions Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapters 8 and 18
	All the following are momentum oscillators EXCEPT a. Advance/decline line b. Relative Strength Index (RSI) c. Stochastics d. Moving Average Convergence/Divergence (MACD)	Answer a. Advance/decline line Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	Most oscillators are constructed a. So that the mid-point goes through zero b. On a semi-logscale to highlight momentum c. So that all points are positive in value d. Without an upper boundary	Answer a. So that the mid-point goes through zero Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	Oscillators are MOST helpful to gauge price behavior in a. Sharply rising markets b. Sharply falling markets c. Sharply rising and sharply falling markets d. Non-trending markets where prices fluctuate in a well defined trading range	Answer d. Non-trending markets where prices fluctuate in a well defined trading range Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	Oscillators are MOST valuable when a. They are confirmed by relative strength measures b. They are accelerating in trend c. Their value reaches an extreme reading near the upper or lower end of their boundaries d. Evaluated using multiple moving averages	Answer c. Their value reaches an extreme reading near the upper or lower end of their boundaries Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	A typical momentum index is constructed by a. Plotting the change in price between the beginning and end of a time interval b. Plotting the difference in volume between the daily high price and the daily low price c. Plotting cumulative price between two points d. Connecting the boxes on a point and figure chart	Answer a. Plotting the change in price between the beginning and end of a time interval Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	Violated support levels typically a. Become support levels as prices fall lower b. Are associated with declining price projections c. Become resistance levels on price bounces d. Indicate an imminent price reversal	Answer c. Become resistance levels on price bounces Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 12
	As with trendlines, speed resistance lines a. Can be used in conjunction with sentiment indicators b. Indicate the potential for immediate price reversals c. Must be confirmed with volume d. Reverse roles once they are broken	Answer d. Reverse roles once they are broken Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 12
	Which pairs are not similar? a. Stochastics = Williams b. RSI = MACD c. MACD = ROC d. None are similar	Answer c. MACD = ROC Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	A rising relative strength line for a stock in a falling market indicates a. That price and volume are diverging b. That the stock is performing worse than the market c. That the stock is performing better than the market d. That the stock’s price is rising despite the falling market	Answer c. That the stock is performing better than the market Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 21
	Which set of indicators would be MOST helpful in analyzing trading range markets? a. Moving averages b. Oscillators c. Cycles d. Elliott Wave	Answer b. Oscillators Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	The four year cycle, also known as the Presidential Cycle, realizes the best returns in the stock market to be a. Election and pre-election b. Mid-term and election c. Pre-election and post election d. Post election and mid-term	Answer a. Election and pre-election Reference: Pring, Martin J. Technical Analysis Explained. Chapter 21
	Which of the following indicators are used to measure market breadth? a. Cumulative breadth line b. Advance/decline ratio c. McClellan oscillator d. All of the above	Answer d. All of the above Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 8
	Which of the following is NOT an underlying assumption of technical analysis? a. Prices move in trends b. Price discounts everything c. The consensus is always wrong d. Supply and demand determines price	Answer c. The consensus is always wrong Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 2
	Which of the following would NOT be considered a means of identifying a trend? a. Regression lines b. Trendlines c. Relative strength lines d. Moving averages	Answer: c. Relative strength lines Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 12
	When a stock breaks through the bottom of a down sloping standard deviation channel (around a regression line) a. The stock is oversold b. An acceleration of the trend may be about to occur c. It is at the limits of normal distribution d. Any of the above	Answer: d. Any of the above Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 12
	Moving averages tend to change direction well after a peak or trough in price and therefore are considered “late” in changing direction. Which of the following is generally considered the MOST effective way to offset this tendency to lag? a. Using a weighted moving average b. Using an unweighted moving average c. Using moving average crossovers d. None of the above	Answer a. Using a weighted moving average Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 14
	A descending triangle that forms in a downtrend would probably be considered a a. Reversal pattern b. Continuation pattern c. Either a or b d. Probably wouldn’t be useful in forecasting the future direction of the trend	Answer b. Continuation pattern Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 15
	Which of the following is NOT true about volume? a. A rally that develops on declining volume is suspect b. A rally that occurs on rising volume points to a probable trend reversal c. Both price and volume can fall off sharply after a buying climax d. A downside break of a moving average or trendline should occur on heavy volume to qualify as a bearish signal	Answer b. A rally that occurs on rising volume points to a probable trend reversal Reference: Pring, Martin J. Technical Analysis Explained. Chapters 22-23
	Which of the following is LEAST reliable? a. Triangles b. Wedges c. Broadening Formations d. Pennants	Answer a. Triangles Reference: Pring, Martin J. Technical Analysis Explained. Chapter 5
	Which of the following is LEAST true of a doji pattern? a. It represents indecision b. It is usually a continuation pattern c. It is usually a reversal pattern d. The opening and closing prices are at identical levels	Answer b. It is usually a continuation pattern Reference: Pring, Martin J. Technical Analysis Explained. Chapter 13
	The January Effect is: a. As the S&P goes in January, so goes the year b. When small cap stocks are more likely to outperform the market c. Has not worked well in recent years d. B and C	Answer d. B and C Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 9
	In a 10-day rate of change indicator, if the latest (more recent) price is higher than the price 10 days ago a. The ratio would be greater than zero b. The ratio would be less than zero c. The ratio would be equal to zero d. The ratio would hold at a constant until the market changed trend	Answer a. The ratio would be greater than zero Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	An extreme overbought reading on a momentum indicator in the early stages of a rally a. Shows that the market is ready to correct b. Indicates that the rally is strong and will probably carry further c. Is a clear indication that the pace of the rally is about to slow down d. Is a clear indication that the pace of the rally is about to accelerate	Answer b. Indicates that the rally is strong and will probably carry further Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 18
	Which statement is true of an uptrending market? a. Momentum indicators will tend to hit greater oversold extremes b. Momentum indicators will tend to stay overbought longer c. Momentum indicators will tend to hit greater overbought extremes than in a downtrending market d. b and c	Answer d. b and c Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians. Chapter 8
	Which would normally be considered a sentiment indicator that is MOST useful to traders? a. Corporate buy backs b. Price/earnings ratios c. Insider buying d. Put/call ratios	Answer d. Put/call ratios Reference: Pring, Martin J. Technical Analysis Explained. Chapter 26
	Which type of chart is usually considered BEST suited for establishing price targets based on a horizontal measurement? a. Line charts b. Daily bar charts c. Point and figure charts d. Candlestick charts	Answer c. Point and figure charts Reference: du Plessis, Jeremy. The Definitive Guide to Point and Figure. Chapters 1-2
	Contrary opinion is a useful investment tool because a. The “little guy” is always wrong b. Traders are often most bearish near market tops c. Institutional investors have access to better information d. It is at turning points where people are wrong	Answer d. It is at turning points where people are wrong Reference: Pring, Martin J. Technical Analysis Explained. Chapter 26
	The longest-term trend in the market is the a. Primary b. Cyclical c. Secular d. None of the above	Answer c. Secular Reference: Dahlquist, Julie R., and Charles D. Kirkpatrick. Technical Analysis: The Complete Resource for Financial Market Technicians Chapter 21
	1. Cycles are GENERALLY measured: a. High to low b. Low to low c. High to high d. Either b or c	b. Low to low
	2. This cycle principle states, as stocks go through similar cycles the size and magnitude will differ: a. Commonality b. Variation c. Summation d. Proportionality	b. Variation
	3. Which would be the MOST useful aspect of a cycle in studying the relationship between cycles of different lengths? a. Phase b. Period c. Amplitude d. None of the above	a. Phase
	4. In regards to cycle analysis, translation is: a. Distance between troughs b. Distance between peaks c. Useful in checking where the trend direction is headed or if it is changing d. To the left when the peak is beyond the halfway point	c. Useful in checking where the trend direction is headed or if it is changing
	5. A complete Elliott wave cycle is made up of how many waves? a. 5 b. 3 c. 8 d. 13	c. 8
	6. In a normal 5‐wave Elliott impulse wave, which wave is USUALLY expected to be the longest and most dynamic? a. 3rd b. 5th c. 1st d. 1st but sometimes 3rd	a. 3rd
	7. When analyzing long term price movements, it could be helpful to use which type of chart? a. Candle chart b. Logarithmic chart c. Bar chart d. Point and figure chart	b. Logarithmic chart
	8. Which of the following would LEAST likely be a continuation pattern? a. Broadening formation b. Inverse head and shoulders c. Ascending triangle d. Flag	a. Broadening formation
	9. Which of the following would NOT be considered a support level? a. Previous high b. Previous low c. Trading range d. All the above are considered to be support levels	d. All the above are considered to be support levels
	10. According to the Dow Theory, secondary corrections can be replaced by a: a. Flag b. Line c. Triangle d. Wedge	b. Line
	11. Which of the following would be the least important factor in determining the significance of a trend line? a. Duration b. Distance from price c. Number of times touched d. Angle of ascent or descent	b. Distance from price
	12. For a breakout or breakdown from a triangle to be considered valid it should occur no more than ___________ of the distance to the apex from the beginning of the pattern? a. One‐half b. Two‐thirds c. Three‐quarters d. Five‐sixths	c. Three‐quarters
	13. What is indicated when Bollinger Bands narrow? a. A stock is ready for a rally b. A stock is ready for a decline c. A stock’s volatility has increased d. A stock’s volatility has decreased	d. A stock’s volatility has decreased
	14. Which of the following is NOT true about gaps? a. Common gaps are of little or no forecasting value b. Breakaway gaps usually come on heavy volume c. Gaps are always filled d. When exhaustion gaps are filled, it is often the sign of a trend reversal	c. Gaps are always filled
	15. Which BEST characterizes continuation patterns? a. There is sideways price action b. They take a long time to form c. They usually represent long‐term patterns d. They signal the start of a new trend	a. There is sideways price action
	16. Which is NOT true of a parabolic blowoff? a. Prices fall sharply after a sharp rise b. Volume is heavy into peak c. The close is near the low end of the daily range d. They are easy to identify	d. They are easy to identify
	17. In order for a Dow Theory sell signal to be confirmed: a. The Dow Jones Industrials (DJI) and the Dow Transports (DJT) must peak simultaneously b. The DJI and DJT must fail to confirm at the highs c. Both the DJI and DJT must break below an important intermediate term support level d. b and c	d. b and c
	18. The Dow Theory uses ONLY: a. High prices b. Low prices c. Closing prices d. All of the above	c. Closing prices
	19. A company whose stock is in a well‐established uptrend reports earnings slightly above consensus estimates. After an initial rally, the stock then ends lower on the day. This would probably be an example of : a. Investor ennui b. Market discounting c. Unrealistic expectations d. A short‐coming of fundamental analysis	b. Market discounting
	20. Point and figure charts are LEAST suited to: a. Establishing targets b. Identifying areas of accumulation or distribution c. Identifying areas of support and resistance d. Identifying breakouts	b. Identifying areas of accumulation or distribution
	21. In a doji candlestick: a. Supply exceeds demand b. Demand exceeds supply c. Supply and demand are in balance d. All the above	c. Supply and demand are in balance
	22. Which of the following is a Fibonacci ratio? a. 50% b. 75% c. 33% d. 66%	a. 50%
	23. When using a moving average crossover system to generate buy/sell signals, a SELL signal would be generated when: a. The slower moving average falls below the faster average b. The slow rises above the fast c. The fast falls below the slow d. Either a or c	c. The fast falls below the slow
	24. Moving averages are of LEAST use in generating buy or sell signals in: a. A sideways trend b. A moderately sloping uptrend c. A steep downtrend d. Not especially useful in any of them	a. A sideways trend
	25. A stock trades in a range between 51 and 55 for 10 days and then moves higher. If you have been charting the stock with a 3 box reversal point and figure chart, with 2 points assigned per box, what would the horizontal count be? a. 30 points b. 10 points c. 60 points d. There would be no count	d. There would be no count
	26. Which of the following is USUALLY associated with major market tops? a. Extended 3rd wave b. Ascending triangles c. Broadening formations d. Pennant	c. Broadening formations
	27. On balance volume is used to: a. Confirm price b. Spot divergence c. Clarify volume trends d. All the above	d. All the above
	28. Common filters used to confirm a trendline break include: a. Penetration above/below the trendline by a set percentage b. A pre‐defined period of time during which prices stay above/below the trendline c. A close above/below the trendline d. All the above	d. All the above
	29. The length of a minor trend is: a. Less than 3 weeks b. Up to 6 weeks c. About 3 months d. Under 6 months but more than a month	b. Up to 6 weeks
	30. As a general rule, in rectangle, triangle, flag and pennant patterns, volume generally: a. Increases as the pattern develops b. Decreases as the pattern develops c. Stays constant as the pattern develops d. Shows signs of accumulation	b. Decreases as the pattern develops
	31. Which type of gap is LEAST likely to be filled when it occurs with high volume? a. Common b. Breakaway c. Exhaustion d. Runaway	b. Breakaway
	32. Trends are MORE LIKELY to persist than reverse. a. In bull markets only b. In bear markets only c. In all markets d. In no markets	c. In all markets
	33. One of the great strengths of technical analysis is its __________ (can be applied to many different markets and time frames). a. Flexibility b. Rigidity c. Predictability d. Systems	a. Flexibility
	34. Trendlines should _________ be redrawn to accommodate an accelerating trend. a. Always b. Never c. Possibly d. Generally	b. Generally
	35. Which of the following is NOT an important use for an oscillator? a. Provides a trading signal in the direction of the price trend when it crosses zero b. Provides a warning when the oscillator and price are diverging and the oscillator is at an extreme c. Provides a method of evaluating the performance of a security relative to another security or index d. Determines when overbought and oversold conditions exist when the oscillator reaches an extreme reading near the upper or lower end of its boundaries.	c. Provides a method of evaluating the performance of a security relative to another security or index
	36. Which of the following percentage parameters is NOT a widely recognized percentage retracement? a. 66% b. 45% c. 50% d. 33% e. None of the abov	b. 45%
	37. An MTA Ethics investigation concludes that the accused Member is declared innocent of any charge. The complainant had simultaneously filed the complaint with a State Agency that decided that the Member is guilty. The MTA ruling stands. a. True b. False	b. False
	38. Jane Doe is a Member and the CEO of her own investment trading firm. She is allowed to use the MTA Directory to send e‐mails to promote her new book. a. True b. False	b. False
	39. It is acceptable for a Member to publish technically‐derived views of future security prices behavior reflecting foreknowledge. a. True b. False	b. False
	40. Members may make statements concerning new methods of technical analysis provided such modifications of existing concepts are fully documented. a. True b. False	a. True
	41. A new proprietary method in the field of technical analysis is introduced by a Member. It is not necessary to document the procedure and rationale supporting the new method because the information is proprietary. a. True b. False	b. False
	42. In a technical debate, a Member disparages the analytical work of another panelist. There is a violation of the Code of Ethics. a. True b. False	a. True
	43. Members are able to act on non‐public information. a. True b. False	b. False
	44. A Member writes an article that includes a deceased author’s original work. The Member needs to obtain permission from the author’s estate for publication. a. True b. False	b. False
	45. What is intermarket analysis? a. Study of the interrelationships between the various independent financial markets b. Study of the internals of the various financial markets c. Study of the various international financial markets and how they influence each other d. None of the above	a. Study of the interrelationships between the various independent financial markets
	46. The secondary trend is measured in_______ and the intermediate trend is measured in _______. a. Months or years; days or weeks b. Weeks or months; weeks or months c. Days or weeks; intraday minutes d. Intraday minutes; weeks and months	b. Weeks or months; weeks or months
	47. Which of the following is a characteristic of a trend? a. Trends tend to reverse rather than continue b. Any trend is influenced by its next larger and smaller trend c. The trend is a straight line d. All of the above	b. Any trend is influenced by its next larger and smaller trend
	48. The Directional Indicator can be defined as: a. Two lines placed 2 standard deviations above or below a moving average b. Two moving averages of the highs c. Two lines tracking higher highs and lower lows to determine trend d. Two moving averages of the lows	c. Two lines tracking higher highs and lower lows to determine trend
	49. Which of the following is FALSE? a. Always trade with the trend b. Breakouts from support/resistance is usually a change in trend c. The longer the trend, the less significant the breakout d. A trend line break is at least a warning of a changing trend	c. The longer the trend, the less significant the breakout
	50. A descending triangle: a. Has a rising support line and a horizontal resistance line b. Has a rising resistance line and a horizontal support line c. Has a falling resistance line and a horizontal support line d. Has a falling support line and a horizontal resistance line	c. Has a falling resistance line and a horizontal support line
	51. How would you use relative strength analysis when comparing sectors? a. Compare RSIs ‐ the higher the number, the more bullish the sector b. Divide the price of one sector by another and compare c. Divide the price of one sector by an industry benchmark and compare d. We don’t compare sectors, we compare industry groups	c. Divide the price of one sector by an industry benchmark and compare
	52. To increase the sensitivity of a 5 x 3 point and figure chart, one would: a. Increase the box size b. Decrease the box size c. Increase the number of boxes needed for a reversal d. Bothaandc	b. Decrease the box size
	53. In point and figure charting, the ability to obtain price objectives through use of the horizontal count is a principal advantage of the: a. One box reversal chart b. Three box reversal chart c. Five box reversal chart d. All of the above	a. One box reversal chart
	54. In what charting technique will trend lines ONLY be drawn at 45 degree angles? a. Bar charts b. Candlestick charts c. Swing charts d. Simplified three box point and figure charts	d. Simplified three box point and figure charts
	55. Which pattern is NOT found in a Point and Figure chart? a. Head and Shoulders b. Two moving averages of the highs c. Bullish engulfing pattern d. Fulcrum	c. Bullish engulfing pattern
	56. What pattern is found in point and figure charts? a. Doji b. Head and shoulders c. Island reversal d. All of the above	b. Head and shoulders
	57. Using intraday 1x1 Point and Figure charts, which breakout is MOST significant? a. A breakout from a 5 column congestion zone b. A breakout from a 10 column congestion zone c. A breakout from a 15 column congestion zone d. The breakouts are of equal significance	c. A breakout from a 15 column congestion zone
	58. You are updating Point and Figure charts. They are one box reversal charts ($1 box size) and the current column has 4 X’s. The most recent posting is $40. The stock closed yesterday at $40.50. Today, the stock opened at $40.60, ran up to $40.95, and closed at the low for the day at $39.11. How many NEW postings will you be making on the chart to reflect today’s trading? a. 0 b. 1 c. 2 d. 3	a. 0
	59. Which of the following is a characteristic of logarithmic scales? a. The percentage gets larger as the price scale increases b. The percentage gets smaller as the price scale decreases c. They are preferred over arithmetic scaling for long‐term trend analysis d. The vertical price scale shows an equal distance for each price unit of change	c. They are preferred over arithmetic scaling for long‐term trend analysis
	60. Point and figure charts are named? a. According to the issue that they are drawn upon b. According to the market on which they are traded c. According to the day of the week, month and year d. According to their box and reversal size	d. According to their box and reversal size
	61. You are updating Point and Figure charts. They are 5x1 charts. The most recent posting is $75. The day’s trading begins at $75.55. A rally ensues that takes the stock up to the day’s high of $77.88. A decline sets in for the rest of the day and the stock closes at the low of $71.23. How many postings will you make on the chart? a. 0 b. 1 c. 2 d. 7	a. 0
	62. Cycles are USUALLY measured from: a. Crest to crest b. Trough to trough c. Wheel to wheel d. Curl to curl	b. Trough to trough
	63. 10 day cycles are BEST timed with: a. 5 day oscillators b. The Bressert oscillator c. 10 day oscillators d. 20 day oscillators	a. 5 day oscillators
	64. Which of the following is NOT true: a. Normality is the principle that relates cycles of different lengths because they are rarely identical b. Summation is the principle that adds cycles together c. Principle of Proportionality states a cycle of similar duration exists everywhere in the market d. a and c	64. Which of the following is NOT true c. Principle of Proportionality states a cycle of similar duration exists everywhere in the market
	65. The following is NOT common of reversal patterns: a. The existence of a prior trend b. The larger the pattern the greater the subsequent move c. Tops usually take longer to form than bottoms d. The break of a major trend line	c. Tops usually take longer to form than bottoms
	66. An inverse head and shoulders pattern is a: a. Topping pattern b. Generally unreliable c. Reversal pattern d. aandb	c. Reversal pattern
	67. The MAXIMUM objective of reversal patterns is: a. 50% retracement b. 66% retracement c. .618 of the current price d. 100% retracement	d. 100% retracement
	69. Which of the following are considered advantages to trading futures? a. Futures do not require an uptick to short b. They are highly leveraged c. They have a favorable tax benefit d. All of the above	a. Futures do not require an uptick to short
	70. Which is TRUE of double tops: a. There are two identifiable peaks at very different price levels b. Volume is lighter during the first peak c. They often occur at market bottoms d. Height is often used as a measuring objective	d. Height is often used as a measuring objective
	71. Of the following, which are NOT correct statements concerning reversal patterns? 1. The larger the pattern, generally the greater the subsequent move 2. Patterns occurring at tops generally take longer to build, while those occurring at bottoms generally complete more quickly 3. Reversal patterns must have something to reverse from 4. Bottoms are usually more volatile than tops, therefore they require less time to build a. 2and4 b. 1and4 c. 1and3 d. 3and4	a. 2 and 4
	72. Which of the following describes an equally weighted average? a. An investor invests the same dollar amount in each security b. Is adjusted by a divisor c. Considers the market capitalization of each security in the average d. Is the way the Dow Jones Industrial Average is calculated	a. An investor invests the same dollar amount in each security
	73. A reasonable price objective once a stock has completed a head and shoulders pattern is: a. 100% of the previous trend b. Derived using the Fibonacci Ratio c. Equivalent to the distance between the head and neckline d. Depends on the action of the accompanying volume	c. Equivalent to the distance between the head and neckline
	74. A continuation pattern is: a. A pause in the prevailing trend b. Usually a sideways price action c. Usually a near term or intermediate term pattern d. All of the above	d. All of the above
	75. A symmetrical triangle is: a. Also called a coil b. Usually a continuation pattern c. A temporary pause in the existing trend d. All of the above	d. All of the above
	76. The apex of a triangular pattern is: a. The point where two lines meet b. A point that helps to time and measure the potency of the pattern c. An important support or resistance level after the breakout occurs d. All of the above	d. All of the above
	77. Volume should diminish during the price swings within a triangular pattern. a. True b. False c. Sometimes d. Only on the downside swings	a. True
	78. The breakout from a triangle formation a. Should take place with a sharp increase in volume b. Should take place between two‐thirds to three‐fourths of the way through the pattern c. Is a price level that immediately becomes support/resistance d. All of the above	d. All of the above
	79. The descending triangle is just a mirror image of the ascending triangle and is GENERALLY considered a ______ pattern. a. Bullish b. Bearish c. Continuation d. bandc	d. b and c
	80. All of the following are TRUE of flag and pennant patterns EXCEPT: a. They are short term patterns completed in one to two weeks b. They are preceded by sharp and nearly straight line moves c. They are characterized by a decrease of volume during the formation of the pattern d. They are reversal patterns	d. They are reversal patterns
	81. The measuring technique for most continuation patterns implies that a price objective from the breakout point is equal to the ____ of the pattern at its broadest point. a. Width b. Height c. None of the above d. 100% of prior trend	b. Height
	82. The reversal pattern that can also appear as a continuation pattern is: a. Saucer b. Head and shoulders c. Spike d. Double top	b. Head and shoulders
	83. Which BEST describes continuation patterns? a. They typically take longer to build b. They typically signal the onset of a new trend c. They are represented by sideways price action d. They precede long term moves	c. They are represented by sideways price action
	84. Stock traders rely heavily on: a. 4 and 92 day moving averages b. 50 and 200 day moving averages c. 30 and 40 week moving averages d. bandc	d. b and c
	85. The simple moving average: a. Gives equal weight to each periods price b. Gives greater weight to the more recent price c. Assigns greater weight to more recent data and includes all of the data in the life of the instrument d. None of the above	a. Gives equal weight to each periods price
	86. A channel breakout system works extremely well in: a. Trending markets b. Non‐trending markets c. Daily and weekly charts and monthly charts d. aandc	d. a and c
	87. The moving average: a. Follows the trend b. Is a smoothing device c. Lags market action d. All of the above	d. All of the above
	88. The “crossover method” refers to: a. Buying the same security high and selling it low twice in the same day b. Taking the buy/sell recommendations of a fundamental analyst c. A buy or sell signal generated when a shorter moving average crosses a longer moving average d. aandb	c. A buy or sell signal generated when a shorter moving average crosses a longer moving average
	89. The MOST commonly used price to calculate the moving average is the: a. High b. Low c. Midpoint d. Close	d. Close
	90. In a 10‐day simple moving average, each day’s price is assigned a weighting of: a. 1% b. 5% c. 10% d. 20%	c.10%
	91. Which moving average(s) assign GREATER weight to the most recent data? a. Simple b. Weighted c. Exponential d. bandc	d. b and c
	92. Longer term moving averages: a. Give fewer buy and sell signals b. Are better at giving signals at major tops c. “Give back” a lot more when the trend reverses d. aandc	d. a and c
	93. A moving average: a. Is a smoothing device b. Enables the analyst to predict precise price targets c. Enables the analyst to predict precise time and price targets d. All of the above	a. Is a smoothing device
	94. Shorter moving averages: a. Produce more trades b. Produce fewer whipsaws c. aandb d. None of the above	a. Produce more trades
	95. To help confirm a price trend, volume should expand: a. On a reversal day b. On a strong close c. In the direction of the trend d. When a price target is met	c. In the direction of the trend
	96. Volume divergence occurs when: a. Volume expands while open interest contracts b. Volume expands while the daily trading range contracts c. A new high in an uptrend takes place on declining volume d. Volume declines during a sideways congestion pattern	c. A new high in an uptrend takes place on declining volume
	97. On a head and shoulders top, the “head” is typically made on: a. Active volume b. Light volume c. Breakout volume d. Normal volume	b. Light volume
	98. Volume in a head and shoulders pattern is usually highest where? a. At the top of the head b. At the completion of the head c. During the right shoulder d. During the left shoulder	d. During the left shoulder
	99. Triangle price patterns should be accompanied by: a. Active volume within the pattern b. Heavier volume in the direction of the eventual breakout c. A gradual drop‐off in volume until the breakout d. No discernable difference in volume until after the breakout occurs	c. A gradual drop‐off in volume until the breakout
	100. Technicians believe that: a. Price precedes volume b. Volume precedes price c. Volume and price are typically coincident indicators d. Volume matters most during breakouts	b. Volume precedes price
	101. A selling climax: a. Typically occurs at a market top b. Typically occurs at a market bottom c. Is accompanied by average to low volume d. Indicates new shorts getting trapped at the bottom	b. Typically occurs at a market bottom
	102. Open interest is: a. The number of contracts traded in a day b. The number of outstanding contracts in any given day c. The sum of total volume and open interest d. None of the above	b. The number of outstanding contracts in any given day
	103. A candlestick with equal opening and closing prices: a. Neutral Cloud b. Spinning Top c. Morning Star d. Doji	d. Doji
	104. The PRIMARY use of a candlestick pattern is to: a. Define the intermediate and short‐term trends, but not the primary trend b. Define the primary, intermediate, and short‐term trends c. Strengthen the possibility of a reversal or continuation of a price trend d. Determine if you are in a bull market or a bear market	c. Strengthen the possibility of a reversal or continuation of a price trend
	105. All the following are momentum oscillators EXCEPT: a. Advance/decline line b. Relative Strength Index (RSI) c. Stochastic d. Moving Average Convergence/Divergence (MACD)	a. Advance/decline line
	106. Which is an example of candle pattern filtering? a. Accepting only those patterns that fit the strict definition of their pattern b. Accepting only those patterns that are confirmed by the intermediate trend c. Using western techniques to confirm a candle pattern d. Using cycles to confirm the existence of a pattern	c. Using western techniques to confirm a candle pattern
	107. Which tools could you use in candle pattern filtering? a. Cycles b. Point and Figure chart c. RSI and MACD d. Dow Theory	c. RSI and MACD
	108. In analyzing a stock using a daily chart, it is BEST to use: a. A period of time between six to twelve months b. A period of time between twelve to fifteen months c. A period of time between sixteen to twenty months d. A period of time between twenty to twenty‐four months e. More than two years of data	a. A period of time between six to twelve months
	109. The limited life feature of the contracts poses some problems for futures traders which stock traders do not face. This is due to: a. The very high volatility related to the futures markets, which results in a lot of whipsaws b. The average futures contract has a trading life of about a year and a half only c. Futures markets are normally more risky than equity markets d. aandb	b. The average futures contract has a trading life of about a year and a half only
	110. Which of the following statements are CORRECT? 1. The proper order to follow in chart analysis is to begin with the long range and gradually work to the ear term 2. Long‐term charts are not meant for trading purposes 3. Triangles do not appear in long‐term charts because of their very short‐term nature a. 1 only b. 1and2 c. 1,2and3 d. 2and3	b. 1 and 2
	111. For a futures contract, daily volume represents: a. The dollar volume of the contracts traded b. The cumulative price change for the day c. The number of contracts traded during the day d. The open interest at the end of the day	c. The number of contracts traded during the day
	112. Flow of fund analysis relies in part: a. On the sentiment of investment advisory services b. On monthly price movements of the Dow Jones Industrial Average c. On market volume statistics d. On measuring the cash position of different investor groups	d. On measuring the cash position of different investor groups
	126. For a futures contract, daily volume represents: a. The dollar volume of the contracts traded b. The cumulative price change for the day c. The number of contracts traded during the day d. The open interest at the end of the day	c. The number of contracts traded during the day
	127. Flow of fund analysis relies in part: a. On the sentiment of investment advisory services b. On monthly price movements of the Dow Jones Industrial Average c. On market volume statistics d. On measuring the cash position of different investor groups	d. On measuring the cash position of different investor groups
	128. A momentum index measures: a. Investor sentiment b. Investor psychology c. The rate of change of prices d. Absolute volume level	c. The rate of change of prices
	129. A simple moving average: a. Is a cumulative breadth measure b. Is constructed from various randomly selected interviews of retail investors c. Seldom changes in value d. Is constructed by totaling a set of data and dividing that total by the number of observations	d. Is constructed by totaling a set of data and dividing that total by the number of observations
	130. The objective of the Dow Theory is to determine: a. Changes in market psychology b. The likelihood of volume reversals c. The primary direction of the stock market d. Timing of market bottoms	c. The primary direction of the stock market
	131. Oscillators are NORMALLY used to: a. Identify overbought or oversold market conditions b. Identify price/volume divergences c. Identify Elliott Wave cycles d. Gauge differentials between buyers and sellers	a. Identify overbought or oversold market conditions
	132. A Point and Figure chart: a. Ignores time b. Gives a clear picture of volume distribution c. Is limited by a four‐year time horizon d. Cannot be used to project price targets	a. Ignores time
	133. One disadvantage to Point and Figure charts is that some formations that would appear on a bar chart do not appear on point and figure charts. Which of the following could one identify using a three point reversal Point and Figure chart? a. Key reversal days b. Gaps c. Selling climax d. None of the above	d. None of the above
	134. Relative strength analysis, as applied in equity analysis, relates: a. Volume changes to price changes b. Unsophisticated investor behavior to price cycles c. Changes in security prices in relation to other security prices, group price indices or market action d. Rate of price change of 4, 13 and 42 weeks	c. Changes in security prices in relation to other security prices, group price indices or market action
	135. The resistance level of a price trend refers to: a. The level under the market where buying interest is sufficiently strong to overcome selling pressure b. The level over the market where selling pressure is sufficiently strong to overcome buying pressure and a price advance is expected to be turned back c. The boundaries of the trading range of the trend d. The target price indicated by the count	b. The level over the market where selling pressure is sufficiently strong to overcome buying pressure and a price advance is expected to be turned back
	136. The support level of a price trend refers to: a. The highest price observed during the preceding cycle b. The lowest price observed during the preceding cycle c. The area over the market where selling pressure overcomes buying pressure and a price advance is expected to be turned back d. The area under the market where buying interest is sufficiently strong to overcome selling pressure and a price decline is expected to be reversed	d. The area under the market where buying interest is sufficiently strong to overcome selling pressure and price decline is expected to be reversed
	137. To measure an overbought or oversold market level, a technical analyst would NORMALLY: a. Look for moving average crossovers b. Look for a series of exhaustion gaps c. Use one or more price oscillators d. Look for price and volume divergences	c. Use one or more price oscillators
	138. Oscillators are NORMALLY used to: a. Identify Elliott Wave cycles b. Identify continuation patterns c. Measure price momentum d. Identify the premium or discount between stock index future contracts and the underlying price index	c. Measure price momentum
	139. The advance‐decline line is used to indicate: a. If the majority of stocks in the market are acting in concert with the major averages b. If volume trends are confirming price trends c. If the intermediate market cycle is nearing completion d. If a bull market is occurring	a. If the majority of stocks in the market are acting in concert with the major averages
	140. Accumulation NORMALLY occurs: a. Near a market bottom b. Near a market top c. In declining markets d. After a completed trading range	a. Near a market bottom
	141. The Kondratieff cycle extends for a period of about: a. 13 weeks b. 13 years c. 54 weeks d. 54 years	d. 54 years
	142. The Public/Specialist Short Sales Ratio is used as a tool that: a. Shows the difference between sophisticated money and unsophisticated money b. Shows the growth in money flow produced by NYSE specialists c. Measures contrary opinion d. Has become obsolete due to derivative product trading	a. Shows the difference between sophisticated money and unsophisticated money
	143. Blow‐offs are identified: a. Near market bottoms b. By observing a sharp rally in prices after a long advance accompanied by a sharp increase in trading activity c. By observing a sudden sharp drop in prices after a long decline accompanied by heavy trading activity d. Using techniques of cycle analysis	b. By observing a sharp rally in prices after a long advance accompanied by a sharp increase in trading activity
	144. A selling climax is identified: a. With declining volume in the beginning rallies from the bottom b. Heavy selling with heavy volume c. A new price low not seen in a long time d. All of the above	d. All of the above
	145. A breakaway gap USUALLY: a. Occurs during the accumulation phase of a market cycle b. Signals the beginning of an important price move c. Provides a major divergence signal d. Occurs at the end of an important price move	b. Signals the beginning of an important price move
	146. Price cycles are NORMALLY measured by: a. Their amplitude b. Their period c. Their phase d. All of the above	d. All of the above
	147. During a consolidation, price action NORMALLY: a. Reverses decisively in one direction on heavy volume b. Moves within well defined neutral boundaries on moderate volume c. Retraces one third of its previous price movement d. Diverges from volume	b. Moves within well defined neutral boundaries on moderate or less than moderate volume
	148. Contrary opinion is USUALLY: a. Ignored b. Measured by observing price cycles and volume patterns c. Considered to be a gauge of investor psychology d. A bullish indicator	c. Considered to be a gauge of investor psychology
	149. A basic Point and figure buy signal is: a. A second successful attempt where the X breaks above the previous column of X’s b. A rally printing a series of new X highs c. Formations of symmetrical triangles d. None of the above	a. A second successful attempt where the X breaks above the previous column of X’s
	150. The target for a rectangle can be calculated by a. Using the width of the rectangle multiplied by the duration of the move b. Using the number of times the resistance/support were touched multiplied by the width of the formation c. Adding the height of the formation to the breakout price d. Adding the pullback to the breakout price	c. Adding the height of the formation to the breakout price
	1. Moving average crossovers can be used to indicate: a. Buy and sell signals b. Positive relative strength c. Negative volume d. Trend divergence	a. Buy and sell signals
	2. Which of the following can be considered a sentiment indicator: a. Specialist Short Sales Ratio b. Mutual Fund Cash/Asset Ratio c. Odd Lot Purchase/Sales Ratio d. All of the above	d. All of the above
	3. Speed resistance lines: a. Divide a trend in thirds b. Measure the rate of ascent or descent of a trend c. Are used to measure percentage retracements d. All of the above	d. All of the above
	4. An exhaustion gap is observed: a. In the beginning stage of a bear market b. After prices have moved sideways for an extended period of time c. Near the end of a major price move d. With light trading volume	c. Near the end of a major price move
	5. On a daily bar chart: a. Each day’s price action is represented by a vertical bar; the daily high, low and close are plotted b. Prices are plotted vertically, time horizontally c. The price scale may be either arithmetic or logarithmic d. All of the above	d. All of the above
	6. An appropriate time interval selection for a bar chart which is designed to show very long‐term trends would be: a. Daily b. Weekly c. Monthly d. Annually	c. Monthly
	7. On a bar chart, volume is NORMALLY shown: a. To the right of the price time series b. Under the price time series c. Above the price time series d. To the left of the price time series	b. Under the price time series
	8. A Point and Figure chart DIFFERS from a bar chart as: a. A new plot on a point and figure chart is made only when the price changes by a given amount b. Time intervals are clearly shown in a point and figure chart c. Point and figure charts are only concerned with measuring price momentum d. A new plot on a bar chart is made only when the price changes by a given amount	a. A new plot on a point and figure chart is made only when the price changes by a given amount
	9. Point and Figure charts display: a. Daily high‐low‐close b. Daily close reversals c. Sequential reversals of price in unit increments d. Daily price and volume data	c. Sequential reversals of price in unit increments
	10. In constructing a Point and Figure chart, a new box is added ONLY when: a. The price has moved by less than the specified box size b. The price has moved by equal to or more than the specified box size c. The volume confirms the price movement d. The price has moved to a new high	b. The price has moved by equal to or more than the specified box size
	11. As the price unit of a reversal on a Point and Figure chart is decreased: a. Time analysis becomes more critical for interpretation b. The detail of price movement graphically displayed is decreased c. The detail of price movement graphically displayed is increased d. The possibility of whipsaws decreases	c. The detail of price movement graphically displayed is increased
	12. Which chart type is more commonly used for displaying relative strength between a stock and the market? a. Line chart b. Bar chart c. Point and Figure chart d. Reversal chart	a. A line chart
	13. The body of the candlestick line displays the relationship between: a. The current session’s high and low b. The current session’s close and the prior session’s close c. The current session’s open and high d. The current session’s open and close	d. The current session’s open and close
	14. A black real body in candle charting means that: a. The close is higher than the open b. The close is lower than the open c. The open is higher than the low d. The current session’s close is lower than the prior session’s close	b. The close is lower than the open
	15. Which Western technical tools can be used on candle charts: a. Trend lines b. Moving averages c. Fibonacci retracements d. All of the above	d. All of the above
	16. A trend line is helpful in determining: a. Overbought or oversold market conditions b. When a price reversal has taken place c. The cyclical interval between bull and bear markets d. A probable price target for the extent of the price move	b. When a price reversal has taken place
	17. The basic concept behind the use of a trend line is that: a. Price and volume tend to confirm each other b. Prices rise and fall in cyclical patterns c. Prices follow a natural rhythm d. A trend in motion will remain in motion until it reverses	d. A trend in motion will remain in motion until it reverses
	18. Technical analysts GENERALLY believe: a. That trend line analysis cannot be applied to point and figure charts b. A price close beyond the trend line is more significant than an intra‐day penetration c. Trend lines are useful for validation of price gaps d. Price whipsaws can be avoided using trend lines	b. A price close beyond the trend line is more significant than an intra‐day penetration
	19. In general, market technicians believe: a. That trend line analysis can be used in conjunction with volume to predict money flows b. That the more times a trend line has been successfully tested, the greater the significance of its violation c. Trend lines are not helpful in gauging support and resistance points d. Trend lines are an art form which do not lend themselves to computer construction	b. That the more times a trend line has been tested, the greater the significance of its violation
	20. In a head and shoulders pattern, volume USUALLY: a. Is greatest in the middle leg b. Increases with each successive peak c. Decreases with each successive peak d. Is constant throughout the pattern	c. Decreases with each successive peak
	21. The characteristics of a cycle are: a. Length, width and breadth b. Price, volume and flow c. Amplitude, breadth and width d. Amplitude, period and phase	d. Amplitude, period and phase
	22. A moving average: a. Is a leading price indicator b. Amplifies the data c. Smoothes out data fluctuations d. Is not appropriate for use on bar charts	c. Smoothes out data fluctuations
	23. Moving averages are MOST often used to signal: a. A reversal in price trend b. Price cycles c. Volume confirmation d. Price targets	a. A reversal in price trend
	24. A simple moving average is often criticized because: a. The most recent events are given extra weight b. The entire price time series is used in its calculation c. Equal weight is given to each point included in the calculation d. It is difficult to calculate	c. Equal weight is given to each point included in the calculation
	25. An exponentially smoothed moving average: a. Excludes older price points in the calculation b. Gives more weight to more recent observations c. Cannot be plotted on a bar chart d. None of the above	b. Gives more weight to more recent observations
	26. A sell signal is NORMALLY given when: a. A shorter length moving average crosses a longer length moving average from above b. A longer length moving average crosses a shorter length moving average from above c. A shorter length moving average remains above a longer length moving average d. A longer length moving average remains above a shorter length moving average	a. A shorter length moving average crosses a longer length moving average from above
	27. Oscillators are used to alert the analyst to: a. Volume divergences b. Continuation patterns c. Extended rallies d. Overbought or oversold price conditions	d. Overbought or oversold price conditions
	28. All the following are momentum oscillators EXCEPT: a. Advance/decline line b. Relative Strength Index (RSI) c. Stochastic d. Moving Average Convergence/Divergence (MACD)	a. Advance/decline line
	29. MOST oscillators are constructed: a. So that the mid‐point goes through zero b. On a semi‐logarithmic scale to highlight momentum c. So that all points are positive in value d. Without an upper boundary	a. So that the mid‐point goes through zero
	30. Oscillators are MOST helpful to gauge price behavior in: a. Sharply rising markets b. Sharply falling markets c. Sharply rising and sharply falling markets d. Non‐trending markets where prices fluctuate in a well defined trading range	d. Non‐trending markets where prices fluctuate in a well defined trading range
	31. Oscillators are MOST valuable when: a. They are confirmed by relative strength measures b. They are accelerating in trend c. Their value reaches an extreme reading near the upper or lower end of their boundaries d. Evaluated using multiple moving averages	c. Their value reaches an extreme reading near the upper or lower end of their boundaries
	32. Using an oscillator, one MOST often observes: a. A peak in momentum in a bull market before a peak in the price trend b. An acceleration in price momentum prior to a major market bottom c. Constant price momentum throughout a price rally extending for at least one year d. Significant change in price momentum throughout a typical four year cycle	a. A peak in momentum in a bull market before a peak in the price trend
	33. A typical momentum index is constructed by: a. Plotting the change in price between the beginning and end of a time interval b. Plotting the difference in volume between the daily high price and the daily low price c. Plotting cumulative price between two points d. Connecting the boxes on a point and figure chart	a. Plotting the change in price between the beginning and end of time interval
	34. In gauging the importance of a potential support or resistance level, the analyst must consider: a. The amount of time that has elapsed between the formation of the original congestion and the nature of general market developments in the meantime b. The volume of stock that has traded in the support or resistance zone c. The speed and extent of the previous price move d. All of the above	d. All of the above
	35. Violated support levels typically: a. Become support levels as prices fall lower b. Are associated with declining price projections c. Become resistance levels on price bounces d. Indicate an imminent price reversal	c. Become resistance levels on price bounces
	36. As with trend lines, speed resistance lines: a. Can be used in conjunction with sentiment indicators b. Indicate the potential for immediate price reversals c. Must be confirmed with volume d. Reverse roles once they are broken	d. Reverse roles once they are broken
	37. The MINIMUM downside projection from a head and shoulders top pattern is derived: a. By estimating the length of the primary price cycle b. By measuring the distance from the penetration of the neckline by the left shoulder to the penetration of the neckline by the right shoulder and extending down from the point of penetration of the right shoulder c. By measuring the width of the left shoulder and subtracting that distance from the neckline d. By projecting downward from the neckline the vertical distance from the top of the head to the neckline	d. By projecting downward from the neckline the vertical distance from the top of the head to the neckline
	38. A moving average crossover system is an accepted method of generating buy and sell signals. An oscillator can be created from such a system that utilizes an histogram to measure the distance between the two moving averages. Which of the following would NOT be an application of such an oscillator? a. Identifying areas of accumulation and distribution b. Identifying divergences c. Identifying short‐term variations from the long‐term trend when the shorter average moves too far above the longer average d. Identify points where the two moving averages cross	a. Identifying areas of accumulation and distribution
	39. Which of the following oscillators is considered to be of MOST use in analyzing trending markets? a. Stochastic b. RSI c. MACD d. None are especially useful in trending markets	c. MACD
	40. A rising relative strength line for a stock in a falling market indicates: a. That price and volume are diverging b. That the stock is performing worse than the market c. That the stock is performing better than the market d. That the stock’s price is rising despite the falling market	c. That the stock is performing better than the market
	41. Which set of indicators would be MOST helpful in analyzing trading range markets? a. Moving averages b. Oscillators c. Cycles d. Elliott Wave	b. Oscillators
	42. If one is studying a cycle of 8 weeks the assumption is that the next longest cycle: a. 10 weeks b. 12 weeks c. 16 weeks d. 24 weeks	c. 16 weeks
	43. The Dead Cat Bounce USUALLY occurs: a. At market bottoms b. At market tops c. During a pause in trend d. Once a week	a. At market bottoms
	44. The four year cycle, also known as the Presidential cycle, realizes BEST returns in the stock market to be: a. Election and pre‐election b. Midterm and election c. Pre‐election and post election d. Post election and midterm	a. Election and pre‐election
	45. The idea that all price movement is the addition of all active cycles is the basis for the principle of: a. Synchronicity b. Summation c. Proportionality d. Harmonicity	b. Summation
	46. Which of the following indicators is used to measure market breadth? a. Cumulative breadth line b. Advance/Decline ratio c. McClellan oscillator d. All of the above	d. All of the above
	47. Relative strength is USUALLY calculated by: a. Determining the money flows of two securities b. Dividing the price of a security by the price of another security, index or subgroup c. Dividing a security’s price by its trading volume d. Calculating the 14‐day price change of the security	b. Dividing the price of a security by the price of another security, index or subgroup
	48. Rising relative strength indicates: a. Lack of investor conviction b. The security is performing better than the market or the entity being compared c. The market is performing better than the security d. Positive price momentum	b. The security is performing better than the market or the entity being compared
	49. Relative strength analysis is useful in identifying: a. Declining volume trends b. Reversal in price momentum c. Significant price gaps d. Industry group rotation	d. Industry group rotation
	50. To spot weakness in an uptrend, volume should be: a. Rising b. Falling c. Greater than the average volume d. aandc	b. Falling
	51. Which of the following is NOT an underlying assumption of technical analysis? a. Prices move in trends b. Price discounts everything c. The consensus is always wrong d. Supply and demand determines price	c. The consensus is always wrong
	52. When Bollinger Bands contract (get closer together) it USUALLY means: a. A stock is ready to rally b. A stock is ready to decline c. Volatility has increased d. Volatility has decreased	d. Volatility has decreased
	53. Point and Figure charts are MOST useful in identifying: a. Trends b. Areas of accumulation and distribution c. Reversal points d. Areas of support and resistance	d. Areas of support and resistance
	54. Which of the following would NOT be considered a means of identifying a trend? a. Regression lines b. Trend lines c. Relative strength lines d. Moving averages	c. Relative strength lines
	55. Which of the following does NOT describe standard deviation lines: a. Two standard deviations represents about 95% of the trading range b. Consists of two variables, starting point and slope c. The center line is a best fit line d. A buy is generated when price crosses the ‐1 standard deviation line from abov	d. A buy is generated when price crosses the ‐1 standard deviation line from above
	56. Candlestick charts can be used to identify: a. Price patterns b. Trend reversals c. Pauses in trends d. All of the above	d. All of the above
	57. Which of the following would NOT be considered an important factor in determining the significance of a trend line? a. Duration b. Distance from price c. Number of times touched d. Angle of ascent or descent	b. Distance from price
	58. Which moving average gives equal weight to each day’s price? a. Exponential b. Weighted c. Simple d. a and c	c. Simple
	59. Which is the LEAST significant penetration of a rising trend line? a. A 1% penetration above the trend line b. A close above the trend line c. Two successive intraday penetrations of trend line d. All the above are equally significant	c. Two successive intraday penetrations of trend line
	60. Which are considered important in determining the validity of a trend line break? a. Time b. Price c. Volume d. All the above	d. All the above
	61. Moving averages tend to change direction well after a peak or trough in price and therefore are considered “late” in changing direction. Which of the following is generally considered the MOST effective way to offset this tendency to lag? a. Using a weighted moving average b. Using an un‐weighted moving average c. Using moving average crossovers d. None of the above	a. Using a weighted moving average
	62. Which of the following would NOT be considered a support level? a. Previous high b. Previous low c. Trading range d. All the above are considered as potential support levels	d. All the above are considered as potential support levels
	63. What is meant by the statement “volume precedes price”? a. Buying pressure usually precedes selling pressure b. Selling pressure is greater than buying pressure c. Price is less important than volume d. Changes in supply and demand are often apparent in volume before price	d. Changes in supply and demand are often apparent in volume before price
	64. A complete Elliott wave is made up of: a. Five motive impulse waves b. Three corrective waves c. An extended 3rd wave d. a and b	d. a and b
	65. A descending triangle that forms in a downtrend would probably be considered a: a. Reversal pattern b. Continuation pattern c. Either a or b d. Probably wouldn’t be useful in forecasting the future direction of the trend	b. Continuation pattern
	66. Which of the following is LEAST reliable? a. Broadening formations b. Wedges c. Triangles d. Pennants	a. Broadening formations
	67. Which of the following is NOT true about volume? a. A rally that develops on declining volume is suspect b. A rally that occurs on rising volume points to a probable trend reversal c. Both price and volume can fall off sharply after a buying climax d. A downside break of a moving average or trend line should occur on heavy volume to qualify as a bearish signal	b. A rally that occurs on rising volume points to a probable trend reversal
	68. Which of the following is LEAST true of a doji pattern? a. It represents indecision b. It is usually a continuation pattern c. It is usually a reversal pattern d. The opening and closing prices are at identical levels	b. It is usually a continuation pattern
	69. Which of the following is NOT true about gaps? a. Common gaps are of little or no forecasting value b. Breakaway gaps usually occur on heavy volume c. Gaps are almost always filled d. When exhaustion gaps are filled it is often the sign of a trend reversal	c. Gaps are almost always filled
	70. Which of the following would MOST likely be a continuation pattern? a. Engulfing pattern b. Head and shoulders c. Double bottom d. Flag	d. Flag
	71. Risk can be defined as: a. Variability of returns b. Amount of loss per trade c. Beta d. All of the above	d. All of the above
	72. In a 10‐day rate of change indicator, if the latest (more recent) price is higher than the price 10 days ago: a. The ratio would be between +1 and ‐1 b. The ratio would be positive c. The ratio would be negative d. The ratio would be constant until the market changes trend	b. The ratio would be positive
	73. An extreme overbought reading on a momentum indicator in the early stages of a rally: a. Shows that the market is ready to correct b. Indicates that the rally is strong and will probably carry further c. Is a clear indication that the pace of the rally is about to slow down d. Is a clear indication that the pace of the rally is about to accelerate	b. Indicates that the rally is strong and will probably carry further
	74. Which statement is TRUE of an up‐trending market? a. Momentum indicators will tend to hit greater oversold extremes b. Momentum indicators will tend to stay overbought longer c. Momentum indicators will tend to hit greater overbought extremes than in a down‐trending market d. b and c	d. b and c
	75. Which would normally be considered a sentiment indicator that is MOST useful to traders? a. Corporate buy backs b. Price/earnings ratios c. Insider buying d. Put/call ratios	d. Put/call ratios
	76. Which type of chart is USUALLY considered BEST suited for establishing price targets based on a horizontal measurement? a. Line charts b. Daily bar charts c. Point and figure charts d. Candlestick charts	c. Point and Figure charts
	77. Contrary opinion is a useful investment tool because: a. The “little guy” is always wrong b. Traders are often most bearish near market tops c. Institutional investors have access to better information d. It is at turning points where people are wrong	d. It is at turning points where people are wrong
	78. Which of the following is NOT one of the “essential areas” of technical analysis? a. Business cycle analysis b. Flow of funds c. Sentiment d. Market structure indicators	a. Business cycle analysis
	79. The longest term trend in the market is the: a. Primary b. Cyclical c. Secular d. None of the above	c. Secular
	80. In the Dow Theory, the MOST important price is the: a. Open b. High c. Low d. Close	d. Close
	81. The most popular types of market indexes include all the following EXCEPT: a. Logarithmic weighted b. Capitalization weighted c. Un‐weighted d. Price weighted	a. Logarithmic weighted
	82. The MOST comprehensive (all‐inclusive) index is: a. Value Line Index b. NY Stock Exchange Composite Index c. Standard & Poor’s Composite 500 Index d. Wilshire 5000 Equity Index	d. Wilshire 5000 Equity Index
	83. Which is the MOST important in identifying a head & shoulders top pattern? a. The shoulders must be of equal height b. Volume on the right shoulder must decrease substantially from previous rallies c. A head & shoulders with a horizontal neckline is more reliable d. Volume must decrease on the successive rallies from the right shoulder to head to left shoulder	b. Volume on the right shoulder must decrease substantially from previous rallies
	84. The longest‐term cycle is GENERALLY recognized as the: a. Juglar cycle b. Kitchin cycle c. Decennial cycle d. Kondratieff cycle	d. Kondratieff cycle
	85. The “January Effect” refers to a seasonal tendency when: a. Large capitalization stocks outperform small capitalization stocks b. Small cap stocks outperform large cap stocks c. Stocks, regardless of size of market caps, bounce back from year‐end tax selling d. Secondary indexes frequently show their largest gains for the year	b. Small cap stocks outperform large cap stocks
	86. Which of the following is NOT a sentiment indicator? a. Put/call ratio b. Consumer confidence index c. Brokerage firm hiring d. Relative strength	d. Relative strength
	87. According to the MTA Code of Ethics, Members and Affiliates are held to the same standards of conduct. a. True b. False	a. True
	88. Members and Affiliates are allowed to use substantially the same language from a report prepared by an author now deceased if the original author receives prominent and adequate credit for the work. a. True b. False	a. True
	89. A Member or an Affiliate must wait at least a week before acting on any recommendation made by the Member or Affiliate, in order to give both the Members or Affiliates employer and clients adequate time to act on such recommendation first. a. True b. False	b. False
	90. Members and Affiliates are permitted to use the Association mailing list for commercial purposes provided they obtain prior permission from the MTA. a. True b. False	b. False
	91. If a Member or Affiliate takes a job with a new employer, he or she is then free from the responsibility to keep in confidence knowledge concerning the lawful private affairs of his or her clients, former employer, or the clients of the former employer. a. True b. False	b. False
	92. A simple moving average is ______ to respond to price changes than a ________ moving average. a. Slower, weighted b. Faster, exponential c. Faster, geometric d. None of the above	a. Slower, weighted
	93. One reason why price oscillators are useful is because _____________________. a. Momentum tends to lead price b. Price tends to lead momentum c. They give you quick entry and exit points d. They are to be used in isolation and are useful in any market	a. Momentum tends to lead price
	94. A secondary cycle can be used to determine the major trend of the market. a. True b. False	b. False
	95. The trend of each cycle is MOST strongly influenced by the trend of the next longest cycle. a. True b. False	a. True
	96. Divergences and failure swings are MOST useful on an RSI indicator when they occur below the _______________line. a. 70 and above the 30 b. 80 and above the 20 c. 60 and above the 40 d. 90 and above the 10	b. 70 and above the 30
	97. Which of the following describes the Equivolume charting? a. It is a technique which compares market performance on days with equal volume b. It is the sum of two exponential moving averages c. It is a bar chart where the bars vary in width which is determined by volume d. It is a variation of the McClellan Oscillator	c. It is a bar chart where the bars vary in width which is determined by volume
	98. Which of the following describes on‐balance volume? a. On days when prices close higher, it is assumed that all volume is represented by buyers b. It is a breadth momentum oscillator c. It is a technique which compares market performance on days with equal volume d. It represents advancing issues as a percent of total issues traded	a. On days when prices close higher, it is assumed that all volume is represented by buyers
	99. Which of the following is NOT true of point and figure charting? a. Due to the complexity in creating these charts, it has only come into common usage with the advent of computers b. It has simple, well‐defined trading rules c. It eliminates price reversals below a minimum value d. It has no time factor	a. Due to the complexity in creating these charts, it has only come into common usage with the advent of computer
	100. What is the relevance of the box size in point and figure charting? a. Box size represents volume traded at a particular price level b. Box size is the amount the price must change before a new column is created c. Box size determines the sensitivity of frequency of trading d. Box size utilized should be consistent for all securities being analyzed	c. Box size determines the sensitivity of frequency of trading
	101. What is the definition of open interest in the futures markets? a. The sum of long and short contracts b. The total number of outstanding long or short contracts c. The difference between long and short contracts d. The volume traded since inception of the contract	b. The total number of outstanding long or short contracts
	102. Which of the following is a difference between point and figure charts and bar charts? a. Point and figure charts more accurately portray time b. Bar charts provide clearer trading signals c. Point and figure charts provide clearer trading signals d. All of the above	c. Point and figure charts provide clearer trading signals
	103. Which of the following is true of the comparison of candlestick charts to bar charts? a. Candlestick charts are based on more data b. Candlestick charts exhibit different trend patterns c. Candlestick charts produce different support and resistance levels d. Candlestick charts allow for easier visual interpretation	d. Candlestick charts allow for easier visual interpretation
	104. In candlestick charts, what is considered the “essence of the price movement?” a. Price trend b. Wick c. Real body d. Shadow	c. Real body
	105. What additional interpretation is possible with candlestick charts compared to bar charts? a. Trends b. Closing prices c. Relative strength between bulls and bears d. Support levels	c. Relative strength between bulls and bears

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