Technical Analysis Day 2 - Support and Resistance

How many companies are listed in the PSE Composite Index (PSEi)?

• 10

• 20

• 30

• 40

Which of the following is true about blue-chip stocks?

• they are stocks of companies that are at a 52-week high

• these are typically large, well-established and financially sound companies that have operated for many years and that have dependable earnings

• companies that are always paying dividends to investors

• these are stocks with volumes that do not go below 1 million actively traded shares daily

Which of the following best describes resistance?

• a level in the price chart where most traders take profit.

• a level in the price chart where most traders set their cut-loss.

• a level in the price chart that determines the value of the volume of the traded stocks

Which of the following is true about support?

• created by buyers entering the market whenever the asset dips to a upper price

• price level that an asset does not fall below for period of time.

• a price level where breakouts always happen

The pivot high and pivot low in a trendline show what very important aspect in your trading strategy?

• increasing volume of shares currently traded

• the average price of an asset of stock

• prevailing direction of price

Which type of trend a novice trader should not place a trade on?

• uptrend

• downtrend

• sideways

TRUE or FALSE: In a channel line, the upper trend line marks resistance and the lower trend line marks support.

• True

• False

Which of the following is NOT true about Darvas Box Theory?

• Traders applying the Darvas box theory target stocks with increasing trade volume.

• The Darvas box theory works best in a rising market and/or by targeting bullish sectors.

• Darvas targets stocks using

  lows and volume as key indicators

• TheDarvas box is created by drawing a line along the recent highs and recent lows of the time period the trader is using.

TRUE or FALSE: Bulltrap traps traders or investors that acted on the buy signal and generates losses on resulting long positions.

• TRUE

• FALSE

TRUE or FALSE: A bear trap is reversal of a declining price trend.

• True

• False