Technical Analysis Quiz

What is the primary focus of technical analysis?

• Evaluating economic indicators

• Assessing intrinsic value

• Studying historical price and volume data

• Analyzing financial statements

Which of the following is NOT a key component of technical analysis?

• Price Charts

• Technical Indicators

• Market Capitalization

• Chart Patterns

What does a bullish candlestick indicate?

• Close = Open

• High < Low

• Close < Open

• Close > Open

According to Dow Theory, how many phases are there in a primary trend?

• Four

• Three

• One

• Two

What is the purpose of support and resistance levels?

• To predict future earnings

• To identify buying and selling pressure

• To analyze economic trends

• To measure market volatility

Which type of chart shows only closing prices?

• Volume Chart

• Candlestick Chart

• Line Chart

• Bar Chart

What does the term 'overbought' refer to in technical analysis?

• A stock is about to reverse

• A stock is experiencing high trading volume

• A stock has reached a high price level

• A stock is undervalued

Which of the following is a misconception about technical analysis?

• It is a systematic approach

• It uses price and volume data

• It relies on historical data

• It can predict the future with certainty

What is the main advantage of using technical analysis?

• It focuses solely on economic indicators

• It guarantees profits

• It provides a subjective view of the market

• It helps identify entry and exit points

What does the term 'volume' refer to in technical analysis?

• The earnings of a company

• The market capitalization

• The price of a stock

• The number of shares traded