1. The basic purpose of a channel line is to A. identify likely reversal points. B. establish basic direction. C. assess the probable direction of the trend. D. identify a trend reversal.

2. In candlestick chart construction, the opening price for a positive session is recorded A. at the highest point of the candle. B. at the bottom of the real body. C. at the top of the real body. D. at the lowest point of the candle.

3. Charles Dows first major contribution to the field of technical analysis is Select one: A. The concept of relative strength analysis. B. The development and use of indices. C. The Dow Theory. D. Point and Figure charting technique.

4. Which are the following represent the bullish market? A. Price down, volume down. B. Price up, volume static. C. Price up, volume down. D. Price down, volume up.

5. A _______ pattern indicates a pause in trend (consolidation) and suggests that the previous direction will resume after a period of time. A. candlestick B. continuation C. megaphone D. reversal

6. Which are the following correctly represent the market condition? A. Price declining, volume down, open interest down: market strong. B. Price rising, volume up, open interest up: market weak. C. Price rising, volume down, open interest down: market strong. D. Price declining, volume up, open interest up: market strong.