Fin 4775 1) On a candlestick chart, what does a white real body show? a) The distance between the opening and closing prices The range between the open and close c) The closing price is higher than the opening price d) The opening price is higher than the closing price 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 e) None of the above 3) The support level of a price trend refers to C a) The highest price observed during the preceding cycle b) The lowest price observed during the preceding cycle e 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 suffciently strong to overcome sel pressure and a price decline is expected to be reversed None of the above e) 4) Blow offs are most prevalent: At major market tops In sideways consolidation patterns c) At major market bottoms d) During slow trading e) After market hours 5) The Dow Theory has been successful in a) Anticipating market tops b Anticipating market bottoms Anticipating the middle portion of primary trends Identifying predominant price cycles None of the above e) 6) A window in candle charts is When two consecutive real bodies are not touching b The same as a "gap" in Western technicals c) The prior session's lower shadow overlaps with the current session's upper sh d) The prior session's upper shadow overlaps with the current session's lower s e) None of the above 13) A major trend in the equity market normally lasts 7 a) One year or more 13 weeks or more c) 13 weeks or less d) four years or more e) none of the above 14) 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 current session's open and close e) None of the above 15) Dow Theory buy and sell signals a) Follow well defined time cycles b) Follow well defined volume cycles c) Are based on closing prices dyAre based on intra-day prices e) None of the above 16) Within a triangle, volume a) Expands throughout the formation Is normally constant throughout the formation b) c) Diminishes as the price swings narrow within the triangle Expands as the price swings narrow within the triangle e) None of the above C 17) 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 Trendlines are useful for validation of price gaps d) Price whipsaws can be avoided using trendlines e) None of the above 18) The most frequent criticism of the Dow Theory is aIts signals are late b) Its signals are early c) Its signals are difficult to identify d) Its signals are subject to frequent reversal e) None of the above 19) A support zone indicates A concentration of supply b) Concentration of demand c) The minimum price level for a head and shoulders pattern d) The maximum price level for a head and shoulders pattern e) None of the above Page 3 HJK L 26) In general, price projections made using the count on a a) Are very accurate b) Are conservative point and figure chart C Need volume and confirmation d) Are estimates of potential price moves c) None of the above 27) Charts constructed using an arithmetic scale show a) Equal dollar price moves cover the same amount of space Equal dollar price moves cover a different amount of space depending on the percensage magnitude of the price movement c) Price and volume d) The interval between time and price e) None of the above 28) Which is the least significant indicator of a trend reversal? C a) A penetration of the trendline of more than 3% b) A penetration two days in a row A closing price beyond the trendline d) An intraday penetration 29) On a bar chart, volume is normally shown To the right of the price time series a) by Under the price time series c) Above the price time series d) To the left of the price time series e) None of the above 30) In candle charts a "doj" occurs when: a) The current session's close is the same as the prior session's close b) The current session's open and low are the same c) The current session's high and close are the same The None of the above current session's open and close are the same e) 31) In a head and shoulders pattern, volume usually a) Is greatest in the middle leg bIncreases with each successive peak c) Decreases with each successive peak d) Is constant throughout the pattern e) None of the above 32) Violated support levels typically a) Become support levels as prices fall lower b) Are associated with declining price projections resistance levels on price bounces d) Indicate an imminent price reversal e) None of the above Page 5