1.Which of the following statements on technical analysis is FALSE?

Common technical analysis tools include moving averages, moving average convergence divergence, relative strengths index, etc.

Technical analysis looks at the fundamental information such as the industry and economy to understand the drivers of asset prices.

Technical analysis aims to identify trading opportunities by analyzing trading statistics such as price movements and changes in trading volumes.

Technical analysis aims to explain the gap between the market price and the intrinsic value.

2.

Which of the following bar charts show the highest volatility?

A

B

C

D

3.

What does the candlestick pattern below indicate?

It signals an ongoing uptrend.

It signals indecision.

It signals the end of an uptrend.

It signals the end of a downtrend.

4

Using Fibonacci retracements , lines of resistance or support are often drawn at __________.

23.4% and 61.2%

38.2% and 61.8%

23.4% and 76.6%

38.8% and 76.4%

5

Which of the following statements on lines of support and resistance is correct?

A real breakout occurs when a low breaks through a support line or a high breaks through a resistance line for one or two days and then prices fall back into line.

Lines of resistance typically become lines of support when real breakouts occur.

Lines of resistance and support are always identified by horizontal lines.

Sell near the support trendline in a downtrend.

6.

Calculate the 12-day exponentially weighted moving average (EMA) based on the information below:

• Yesterdays EMA: 60
• Todays closing price: 55
• Yesterdays closing price: 58

59.69

57.67

59.23

58.14

7

Identify all the sell signals based on the share price and moving averages in the Bloomberg screen below. The blue line is a 200-day moving average and the orange line is a 50-day moving average.

A

B

C

D

8.

Which of the following is a bullish signal in technical analysis?

Review Later

When the share price line moves below the shares moving average line

When the RSI is above 70%

When a rising price is accompanied by a falling volume

When the MACD line crosses above the signal line

9

Which technical analysis tool can be used to identify potential support and resistance levels?

Shorter-term moving average and longer-term moving average

MACD and signal line

%D and %K

Bollinger bands

10 .

Calculate the 12-day relative strengths index (RSI) using a simple moving average based on the information below.

Day	1	2	3	4	5	6	7	8	9	10	11	12
Price Movement	+3	+5	-2	+2	+1	-3	+2	+4	+3	-1	-3	+1

Review Later

70%

54%

85%

62%

11.

Which of the following is true based on the Bloomberg screen below? (+DMI is the green line, -DMI is the red line, and ADX is the white line.)

The downtrend of this security is weak in January 2020.

The price of this security is dropping in December 2019.

The price of this security is rising in late September 2019.

The uptrend of this security is strong in May 2020.

12

Calculate the fast stochastic indicator %K based on the information below.

• Day open: 230
• Day close: 245
• Period low: 170
• Period high: 268

76.5

97.4

15.3

61.2

13

Match the following terms with the corresponding descriptions.

ABCD

+DMI

ABCD

MACD

ABCD

Support

ABCD

Fast stochastic indicators

1. The difference between the 12-day EMA and 26-day EMA
2. The level at which demand is strong enough to stop the stock from falling further
3. The difference between todays high price and yesterdays high price
4. The current price relative to highs and lows over a time period

14

Identify ALL the overbought regions in the following Bloomberg screen of slow %D and slow %K.

A

B

C

D

15

Which of the following is a sell signal in technical analysis?

When the shorter-term moving average crosses above the longer-term moving average

When the price hit the top of the Bollinger bands

When fast %K crosses above fast %D

When the price hit the uptrend support level