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Technical Analysis Day 2 - Support and Resistance

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

How many companies are listed in the PSE Composite Index (PSEi)?

a)

10

b)

20

c)

30

d)

40

2.

Which of the following is true about blue-chip stocks?

a)

they are stocks of companies that are at a 52-week high

b)

these are typically large, well-established and financially sound companies that have operated for many years and that have dependable earnings

c)

companies that are always paying dividends to investors

d)

these are stocks with volumes that do not go below 1 million actively traded shares daily

3.

Which of the following best describes resistance?

a)

a level in the price chart where most traders take profit.

b)

a level in the price chart where most traders set their cut-loss.

c)

a level in the price chart that determines the value of the volume of the traded stocks

4.

Which of the following is true about support?

a)

created by buyers entering the market whenever the asset dips to a upper price

b)

price level that an asset does not fall below for period of time.

c)

a price level where breakouts always happen

5.

The pivot high and pivot low in a trendline show what very important aspect in your trading strategy?

a)

increasing volume of shares currently traded

b)

the average price of an asset of stock

c)

prevailing direction of price

6.

Which type of trend a novice trader should not place a trade on?

a)

uptrend

b)

downtrend

c)

sideways

7.

TRUE or FALSE: In a channel line, the upper trend line marks resistance and the lower trend line marks support.

a)

True

b)

False

8.

Which of the following is NOT true about Darvas Box Theory?

a)

Traders applying the Darvas box theory target stocks with increasing trade volume.

b)

The Darvas box theory works best in a rising market and/or by targeting bullish sectors.

c)

Darvas targets stocks using

lows and volume as key indicators

d)

TheDarvas box is created by drawing a line along the recent highs and recent lows of the time period the trader is using.

9.

TRUE or FALSE: Bulltrap traps traders or investors that acted on the buy signal and generates losses on resulting long positions.

a)

TRUE

b)

FALSE

10.

TRUE or FALSE: A bear trap is reversal of a declining price trend.

a)

True

b)

False