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Questions # 11:

A correlation coefficient of 0.75 between two variables suggests ______ relationship:

Options:

A.

extremely strong

B.

strong

C.

low

D.

non-existent

Expert Solution
Questions # 12:

Which of the following is one of the disadvantages of computerized trading systems?

Options:

A.

Trading decisions are less consistent

B.

Most computerized systems are unprofitable in non-trending markets

C.

Profit trades are exited too early

D.

Computerized systems miss many market trends

Expert Solution
Questions # 13:

_____________ captures an increasing part of the profits as price moves in a favorable direction.

Options:

A.

Initial Stop

B.

Trailing stop

C.

Sell stop

D.

Standard deviation stop

Expert Solution
Questions # 14:

Which is NOT true of the three advancing white soldiers' pattern?

Options:

A.

It is a gradual and steady rise

B.

Each real body opens within or near the prior session's real body

C.

It is composed of three white candles with successively higher closes

D.

Each candle should have a long upper shadow

Expert Solution
Questions # 15:

Which of the following are valid interpretations of the put-call ratio?

Options:

A.

It is the major sentiment index used for options trading

B.

It is used as a contrary indicator

C.

Extreme levels are trading signals

D.

All of the above

Expert Solution
Questions # 16:

Which of the following is a proper technical usage of MACD indicators?

Options:

A.

Trendline analysis can be used with MACD

B.

MACD crossover rules are different than other crossover rules

C.

MACD histograms are best used to initiate new positions contrary to the price trend

D.

When the slower MACD line is above the faster line, the MACD histogram will be above zero

Expert Solution
Questions # 17:

According to the raw performance statistics which of the following statements predicts the correct when the performance of a broadening pattern at its best and its failure rate?

Options:

A.

At best, the performance of an expanding pattern is average, and its rate of failure is above average

B.

At best, the performance of an expanding pattern is average, and its rate of failure is below average

C.

At best, the performance of an expanding pattern is above average, and its rate of failure is above average

D.

At best, the performance of an expanding pattern is below average, and its rate of failure is above average

Expert Solution
Questions # 18:

Which of the following rules can be utilized as an entry strategy for a long trade based bullish MACD histogram divergence?

Options:

A.

Go long when the MACD fast line turns higher.

B.

Go long when the MACD slow line turns higher.

C.

Go long when the histogram ticks up from the second bottom.

D.

Go long when the MACD line crosses above the signal line for the second time confirming the divergence.

Expert Solution
Questions # 19:

Which of the following is a CORRECT usage of oscillators in technical analysis?

Options:

A.

Oscillators are least useful when they reach an extreme reading near the upper or lower ends of their boundaries

B.

Divergences between price and oscillators are important confirmation signals

C.

When an oscillator crosses the zero line, it provides an important trading signal in the direction of the trend

D.

All of the above

Expert Solution
Questions # 20:

A trend-based trading system where the trend is the weighting of the recent closing prices by a smoothing constant:

Options:

A.

Point and figure

B.

Simple moving average

C.

Exponential smoothing

D.

N-day break

Expert Solution
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