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Technical Analysis

Total questions: 30

Worksheet time: 2hrs 30mins

Name
Class
Date
1.

Which of the following best describes a candlestick?

a)

candlesticks are used to determine real valuations of the company

b)

candlesticks show how company will earn higher capital gain

c)

A type of price chart used in technical analysis that displays the high, low, open, and closing prices of a security for a specific period

d)

candlesticks shows the volume of the stocks bought and sold in the market

2.

A stock that is said to be decreasing in price is called ______________?

a)

bearish stock

b)

bullish stock

c)

doggish stock

d)

birdish stock

3.

How do you earn in stocks?

a)

Price appreciation and dividends

b)

Price appreciation only

c)

By owning company shares and participating in the board decisions

d)

profit obtained through capital gain of the company

4.

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

5.

Which of the following is NOT true about MACD?

a)

MACD tracks the volume of a specific stock

b)

MACD uses moving averages

c)

MACD can signal price reversal

d)

MACD can identify the coming change of direction of the stock price

6.

What kind of Analysis is using past market data to analyze stocks and make better trading decisions.

a)

Fundamental Analysis (FA)

b)

Technical Analysis (TA)

c)

Financial Statement Analysis

d)

Intrinsic Value Analysis

7.

Which are the Concepts in Technical Analysis?

a)

Financial Statements Analysis

b)

Support and Resistance Levels

c)

Moving Averages (MA)

d)

Trend Analysis

e)

Volume

8.
4. Assumption that profit seeking investors in the market place react quickly to the release of information and when the new information about a stock appears investors reassess the intrinsic value of the stock and adjust their estimation of its price is based on which of the following theory
a)
a. Efficient market
b)
b. Random walk
c)
c. Rational expectation
d)
d. Technical analysis
9.

What does Elliot Wave Theory say about the market?

a)

Market goes wee-woo-wee-woo

b)

The market goes up and then down over and over

c)

The market moves in a generally predictable wave pattern

d)

All of the above

10.

This theory proposes that stock markets move in cycles that repeat themselves and called them cycles’ waves.

a)

Elliot wave theory

b)

EMH

c)

Dow Theory

d)

MACD

e)

Fibonacci Theory

11.

Which of the following statements best describes the discipline known as technical analysis?

a)

The positions of planets in the sky at any given time are the main indicators of the likely course of events.

b)

The universe is ruled by law; all life and movement including the stock market consists of vibration.

c)

The forecasting of prices based on patterns in past market data and indicators derived from price, volume, and sentiment.

d)

The analysis of chart patterns such as head and shoulders.

12.

Which of the following statements are assumptions underlying technical analysis? [Check all that applies / the correct answer may be more than one]

a)

Prices are determined by the interaction of supply and demand.

b)

Price discounts everything.

c)

Prices are usually at equilibrium.

d)

Prices are non-random.

13.

Downtrends are characterized by:

a)

Lower troughs and lower peaks

b)

Lower troughs and higher peaks

c)

Higher peaks and higher troughs

d)

Prices trading in a range without significant upward movement

14.

Which of the following statements is the best definition of a trend?

a)

Price oscillations as they move toward a theoretical equilibrium.

b)

A directional movement of prices that remains in effect long enough to be identifiable and still profitable.

c)

When there are more buyers than sellers or more sellers than buyers, prices will tend to travel in one direction for a period of time or trend.

d)

Changes in supply and demand over time.

15.

Which of the following is generally true of the head and shoulders pattern?

a)

Volume is important in interpreting the data.

b)

The neckline, once breached, becomes a support level.

c)

Head and shoulders patterns are generally followed by an uptrend in the security’s price.

d)

All are correct

16.

Which type of pattern is illustrated most cleary?

a)

Triangle

b)

Triple top

c)

Head and shoulder

d)

Double top

e)

Inverse head and shoulder

17.

See the attachement, the uptrend was most likely broken at a price level nearest to:

a)

7 RMB.

b)

8.5 RMB.

c)

9 RMB.

d)

10 RMB.

18.

See the attachement, it appears to show resistance at a level nearest to:

a)

50p.

b)

200p.

c)

300p.

d)

400p.

19.

Which of the following are a momentum oscillator? [Check all that apply]

a)

MACD

b)

Stochastic Oscillator

c)

Bolliger Bands

d)

RSI

e)

MA

20.

Which of the following is a reversal pattern?

a)

Pennant

b)

Rectangle

c)

Double bottom.

d)

Triangle

21.

If your MACD is oscillating far from each other regardless of direction, what can we infer?

a)

there is going to be a spike in volume

b)

there is going to be a sudden change of MACD direction

c)

the trend (whether downtrend or uptrend) is strong

d)

momentum of the stock is getting weaker

22.

What is meant by price reversal?

a)

a change in the price direction of an asset. It can occur to the upside or downside.

b)

continuous upward price movement

c)

when you get stopped out against your desired price

23.

A candlestick with bullish trading pattern that may indicate that a stock has reached its bottom and is positioned for trend reversal.

a)

Hammer Candlestick

b)

Bullish Harami

c)

Red Hammer Candlestick

d)

Green Hammer Candlestick

24.

Suppose that you own 100 shares that are currently worth $50. Assume you want to hold on to your shares, but are worried that the price of your shares might collapse. You definitely want to sell the shares if their price falls to $25. What kind of order should you place?

a)

A sell limit order for 100 shares at $50.

b)

A sell market order for 100 shares.

c)

A stop loss order for 100 shares at $25.

d)

A sell limit order for 100 shares at $25.

25.

The common jargon for areas on the chart where price has a different time breaking through are _________

a)

Resistance

b)

 Support

c)

None of these

d)

Both of these

26.

______ is something which stops the price from rising further.

a)

Support Level

b)

Bearish Level

c)

Resistance level

d)

None of the above

27.

Which of the following best describes the stock market from the trader's perspective?

a)

It is where a trader can BUY and SELL shares of companies and make a profit of it

b)

It is where a trader can BUY goods or services offered by the company

c)

It is where a trader can barter his/her stock for another

d)

It is where a trader can surely make money without any risk involve

28.

A theory developed to analyze the movement of indices and was based on the 'closing' price of the indices.

a)

Dow Theory

b)

EMH

c)

Elliot wave Theory

d)

Charts

29.

This info would be most useful for...

a)

Technical Analysis

b)

Fundamental Analysis

c)

Fair-Market Analysis

d)

Bull Market Analysis

30.

A candlestick with bullish trading pattern that may indicate that a stock has reached its bottom and is positioned for trend reversal.

a)

Hammer Candlestick

b)

Bullish Harami

c)

Inverted Hammer Candlestick

d)

Bearish Harami

e)

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