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Advanced Wealth Management Course (IIBF) - Paper 3
Part III: Ch 8: Technical Analysis
Q1.
The secondary trend is the long-range cycle that carries the entire market up and down.
Q2.
(I) Technical analysis is based on the premise that history will repeat itself in patterned movements which can be identified by studying the past price behaviour. (II) The primary trends are day-to-day fluctuations in the market.
Q3.
(I) The Dow theory states that the secondary corrections in prices will be shorter duration than the secondary advances in prices. (II) The secondary trend, which usually last from several weeks to several months.
Q4.
(I) When the stock declines towards its support level, supply of the stock would tend to increase and the stock price would begin to ease off. (II) When the stock increases towards its resistance level, demand for the stock would tend to increase and the price would begin to increase again.
Q5.
Which pattern in Japanese candlestick charting shows that the price opened at the lowest level of a period and closed at the highest level of the period?
Q6.
Which pattern in Japanese candlestick charting indicates a small difference between the opening and closing prices during a period, which indicate consolidation?
Q7.
(I) Black Marubozu indicates a bullish price trend for the period. (II) White Marubozu indicates a bearish price trend for the period.
Q8.
Which pattern in Japanese candlestick charting is considered as a potentially bullish pattern that occurs during downtrend?
Q9.
(I) Bullish engulfing candle indicates a possible reversal from an uptrend to a downtrend. (II) Hanging man is considered as a potentially bearish pattern that occurs during an uptrend and indicates reversal to a downtrend.
Q10.
Which pattern indicates a probable change in direction from the previous period’s direction that is composed of a long body?
Q11.
In a bearish doji star, the doji follows a white long body, in the midst of an uptrend, indicates possible direction change to a downtrend.
Q12.
Which pattern indicates that the stock price is falling twice at a resistance and then reverses and then reverses sharply?
Q13.
In Bar charts, the closing price is displayed on the left side of the bar and the opening price is shown in the right side.
Q14.
The Relative Strength Index (RSI) is calculated by:
Q15.
(I) The RSI ranges from 0 to 100. (II) The RSI, which is a comparison between the days that a stock finishes up and the days it finishes down.
Q16.
Which pattern is a gradual curve, a steady flattening of the uptrend that brings the stock into a downtrend?
Q17.
Which pattern usually occurs when a stock is in an up-trend and sets a new high?
Q18.
(I) In long bodies, both the bodies and the “wicks” are long. (II) In short bodies, the bodies are long and the “wicks” are short.
Q19.
A black Marubozu shows that the price opened at the highest level of a period and closed at the lowest level of the period.
Q20.
(I) In Candlestick Analysis, if the close is above the open, the body of the rectangle is red. (II) In Candlestick Analysis, if the close is below the open, the body of the rectangle is white.

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