Technical Analysis Quiz

What is the primary focus of technical analysis?

• Measuring a security's intrinsic value

• Analyzing past prices and volume to predict future price movements

• Evaluating company management

• Studying macroeconomic factors

What is another name for a technical analyst?

• Fundamentalist

• Chartist

• Economist

• Statistician

Which of the following is NOT an assumption of technical analysis?

• The market discounts everything

• Price moves in trends

• History tends to repeat itself

• Company earnings are the primary driver of stock prices

What does the assumption "Price moves in trends" imply?

• Prices are random and unpredictable

• Prices are more likely to continue in the same direction as the current trend

• Prices always reverse after a trend is established

• Prices are unaffected by supply and demand

Which type of trend is characterized by prices moving within a certain interval without a clear direction?

• Bull trend

• Bear trend

• Sideways trend

• Cyclical trend

What is the main difference between technical analysis and fundamental analysis?

• Technical analysis focuses on financial statements, while fundamental analysis focuses on charts

• Technical analysis ignores market activity, while fundamental analysis relies on it

• Technical analysis uses charts to predict price movements, while fundamental analysis measures intrinsic value

• Technical analysis is only used for long-term investments

Which of the following is an advantage of technical analysis?

• It relies heavily on financial statements

• It is easy to understand and can be performed quickly

• It ignores market psychology

• It is only applicable to long-term investments

What is the "self-fulfilling prophecy" criticism of technical analysis?

• Charts are always inaccurate

• All investors taking the same action based on charts can influence the market

• Technical analysis cannot predict future prices

• It is too slow to react to market changes

Which of the following best describes the psychology of a market cycle?

• Greed leads to buying, fear leads to selling, and the cycle repeats

• Prices are always random

• Market cycles are unaffected by human emotions

• Fear leads to buying, greed leads to selling

What is the primary tool used by a technical analyst?

• Financial statements

• Charts

• Economic reports

• Company press releases