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Viewing questions 71-80 out of questions
Questions # 71:

How would one improve a trading system utilizing band penetrations as trading signals which is giving too many unprofitable trade signals?

Options:

A.

Narrow the bands

B.

Widen the bands

C.

Utilize a shorter time horizon

D.

Utilize stop loss orders

Expert Solution
Questions # 72:

When using a two moving averages (MA. system, which of the following rules can be utilized to generate a buy signal?

Options:

A.

Buy when the faster moving average crosses the slower moving average from above.

B.

Buy when the faster moving average hooks the slower moving average from above.

C.

Buy when the faster moving average hooks the slower moving average from below.

D.

Buy when the current price crosses above both moving averages.

Expert Solution
Questions # 73:

The stochastic oscillator was created utilizing which basic observation?

Options:

A.

As prices decline, the trading range tends to narrow

B.

Changes in volume precedes price movements

C.

Existing oscillators were limited to a range of 0 to 100

D.

As prices increase, prices tend to be closer to the upper end of the trading range

Expert Solution
Questions # 74:

If the upper breakout level is getting higher and higher along the upper trend line which of the following statement is not predicted correctly about this trend?

Options:

A.

It using up much of any potential gain after a breakout

B.

It is also moving farther from any realistic protective stop level

C.

It is increasing the risk

D.

It using up much of any potential gain just before a breakout

Expert Solution
Questions # 75:

Which of the following is true for the use of the chi square test?

Options:

A.

Used as the main confirmation test in Dow Theory

B.

Compares risk to expected returns

C.

Compares actual returns to expected returns

D.

Signals moving average crossovers

Expert Solution
Questions # 76:

Which of the following is a FALSE statement about MACD?

Options:

A.

The signal line is also a moving average

B.

It is most useful in a trending market

C.

The calculation does not use any simple moving averages

D.

If MACD has had a positive value for more than 12 periods, this is predictive of a reversal.

Expert Solution
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