7.2

What are Wedges and Flags in a stock chart?

A triangular shape formed by the intersection of two trendlines

A price below the current market price

A technical analysis tool to measure the highs and lows of a security price relative to previous trade data

A measure of risk versus reward

What does the upside-down formation of the Head and Shoulders indicate?

A resistance line and support line have switched

The change of market sentiment from bearish to bullish

Left Shoulder, Head, Right Shoulder, Neckline

The buyers are starting to lose power

In a Candlestick chart, which part has the most emphasis?

High

Open

Close

Low

What does a Double Top indicate?

A new price floor

The longer the duration of the trading range

A market bottom

A market top

What will a Flag on a stock chart indicate?

Identifying a relative high or low price over a specific period

The relative strength or weakness of a security you are considering putting into or removing from your portfolio

After prices consolidate in a down trend, there will be a breakout point where they start to rise

A bearish signal occurs when prices break below the lower trendline.

What does the Morning Star formation indicate?

A bearish reversal pattern

A bullish reversal pattern

A bullish pattern

A bearish pattern

What do Fibonacci ratios often display?

The points at which a market price reverses its current position or trend

How much a company is earning compared to the price of the stock

It indicates that the stock hit a bottom market price

An indication that the bulls are losing interest in the stock

What is the MACD used for?

To have your profits and losses cancel out, a 0% return.

To take advantage of price differences in at least two different markets

To track the emotions of traders

To show trends following the characteristics of this centered oscillator

What do the Bollinger Bands measure?

The growth of the S&P 500

Investor sentiment

Volatility

The rate of inflation

What is a moving average?

A line on a chart that smoothes out the recent price history over a certain period

A line on a chart that smoothes out the recent price history over the last month

A line on a chart that smoothes out the price predictions over a certain period

A line on a chart that smoothes out the price predictions over the last month

What is the Relative Strength Index (RSI) used for?

To identifying when an asset is oversold or overbought

It indicates the direction and strength of a price movement

To smooth out returns so it's easier to understand when comparing alternative investments

To determine the spread of a data set when compared to the mean value

What does it mean when the RSI rises above 50?

The average gains are higher than average losses

The average gains are lower than average losses

There are a lot of sellers at this point

Prices will retrace back down to a prior support level

What does MACD stand for?

Market Average Connection/Deflection

Market Average Confluence/Disparity

Moving Average Conflict/Discrepancy

Moving Average Convergence/Divergence

Which candle formation occurs when the open and close are at the high of the day?

Spinning Top

Hammer

Dragon Doji

Doji

What happens when a stock's price breaks through a resistance line?

The price reaches a new low

The price reaches a new high

The price retraces back down

The price retraces back up

What happens when a stock's price breaks through a support line?

The price reaches a new low

The price reaches a new high

The price retraces back down

The price retraces back up