INV556 CHAPTER 2 PART 1

On the chart, the y-axis (vertical axis) represents the ____, and the x-axis (horizontal axis) represents

the ______. Prices are plotted from left to right

across the x-axis with the most recent plot being the

furthest right.

• price, time

• date, price

• date, time

Market volatility can also be easily gleaned from charts.

• true

• false

• uncertain

They also analyze volume and other psychological

indicators

• Buy, Sell

• (breadth, % of bulls vs % of bears, put/call ratio)

• Put/call only

The closing price is important , since it reflects only

those participants who are prepared to hold the security

overnight or over a weekend.

• False

• True

• Entah

The open and close

prices of stocks or other financial

instruments are embedded in bars

which are plotted as a series of

prices over a specific time period.

• True

• False

Bar charts allows traders to see

patterns more easily. In other

words, each bar is actually just a

set of 4 prices for a given day, or

some other time period

• False

• True

Closing price is resting on

the high of the vertical

bar.

• Very weak bar

• Weak bar

• Very firm bar

Closing price above mid-

point but below the high.

• firm

• very firm

Closing price is at the low

of vertical bar.

• Very firm

• weak

• Very weak

• unknown

There are two methods in scaling technical

analysis chart.

1) Arithmetic scale

2) Yogarithmic scale

• True

• False