EBW3043 - Technical Analysis

The followings are the challenges to technical trading rules, EXCEPT:

• Many price patterns become self-fulfilling prophecies.

• Past price patterns or relationships between specific market variables and stock prices may be repeated.

• The standard values that signal investment decisions can change over time.

• Require a great deal of subjective judgment.

What does the weak-form Efficient Market Hypothesis (EMH) mean?

• Current stock price reflects all existing available information

• Current stock price reflects all publicly available information as well as private information

• Current stock price reflects all publicly available information

• Current stock price reflects all past information

Which of the following is a technical analysis tool used to identify trends in foreign market?

• Income statement

• Balance sheet

• Moving average

• Cash flow statement

What is technical analysis in bond market?

• Analysis of past bond market data to identify trends and make predictions

• Analysis of political events affecting the bond market

• Analysis of economic indicators affecting the bond market

• Analysis of fundamental factors affecting the bond market

Technical analysis is heavily dependent on financial accounting statement.

• TRUE

• FALSE

Technical analysis relies most importantly on:

• Price and volume data.

• Accurate financial statements.

• Fundamental analysis to confirm conclusions.

Which underlying assumption of technical analysis is true？

• Supply and demand are only governed by rational factors and are not affected by irrational factors.

• Prices of individual securities and the overall market value do not tend to move in persistent trends.

• Prevailing trends do not change in reaction to shifts in supply and demand relationships.

• The market value of good and service is determined solely by the interaction of supply and demand.

Is it possible for technical analysts to think of credit balances in brokerage accounts as having potential purchasing power?

• YES

• NO

How does the yield spread between high-grade and intermediate-grade bonds affect the Barron's Confidence Index?

• A declining yield spread is bullish, while an increasing yield spread is bearish.

• A declining yield spread is bearish, while an increasing yield spread is bullish.

• A declining yield spread is bullish and bearish, depending on market conditions.

• The yield spread has no effect on the Barron's Confidence Index.

How do investors use the overbought and oversold signals generated by the 200-day moving average to make investment decisions?

• They sell when the market is overbought and buy when it is oversold.

• They buy when the market is overbought and sell when it is oversold.

• They hold their positions when the market is overbought and undersold.

• They ignore the signals generated by the 200-day moving average.