Technical Analysis

What is the purpose of Technical Analysis?

• To develop a point of view on markets

• To analyze profit and loss statements

• To study historical price data

• To predict future market trends

Which chart type is commonly used in Technical Analysis?

• Line chart

• Bar chart

• Pie chart

• Area chart

What is the advantage of using candlestick charts?

• They provide visual appeal

• They display all four price variables

• They are easy to interpret

• They show historical price data

What is the assumption behind Technical Analysis?

• Markets discount everything

• Price moves in trends

• History tends to repeat itself

• All of the above

What does a bullish candlestick indicate?

• Positive day for the markets

• Negative day for the markets

• No significant price movement

• Strong buying activity

Which time frame is suitable for a long-term investor?

• Monthly charts

• Intraday charts

• Daily charts

• Weekly charts

What is the purpose of multiple candlestick patterns?

• To identify trading patterns

• To analyze profit and loss statements

• To predict future market trends

• To display historical price data

What is the significance of a Doji candlestick?

• Indicates a strong buying activity

• Indicates indecision in the market

• Indicates a bearish trend

• Indicates a bullish trend

What does a shooting star candlestick indicate?

• Positive day for the markets

• Negative day for the markets

• No significant price movement

• Reversal of an uptrend

What is the purpose of the Engulfing pattern?

• To identify trading patterns

• To analyze profit and loss statements

• To predict future market trends

• To display historical price data