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Quiz Chapter 1 & 2

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Past performance of the stock can be used to predict its future movement.

a)

YES

b)

NO

2.

The wick of the candlestick can give what information?

a)

future movement of the stock

b)

a possible breakout

c)

the highest and the lowest price it traded within a given timeframe

d)

a possible breakdown

3.

The market is strong when prices are rising even though volume is decreasing.

a)

True

b)

False

c)

Explanation


When prices rise and volume rises, there are more buyers and thus there is strength in the market. Volume is a measure of the amount of "intensity" behind a price trend.

4.

People who sell shares in expectation of a drop in price on the stock market are called...

a)

bears

b)

bulls

c)

hedgehogs

d)

pessimists

5.

People who buy shares in expectation of a price rise on the stock market are called

a)

bulls

b)

bears

c)

optimists

d)

storks

6.
3. Which of the following most likely attempts to understand the market sentiments behind the trend in a stock price
a)
a. Technical analysis
b)
b. Fundamental analysis
c)
c. Industry analysis
d)
d. Moving average analysis
7.
34. Assumption that All influence on market price are automatically accounted for or discounted in price activity is a basis of
a)
a. Technical analysis
b)
b. Random walk
c)
c. Efficient market
d)
d. Rational expectation
8.

Which is NOT AN ASSUMPTION in Technical Analysis?

a)

The market discounts everything.

b)

Stock Prices are always high in the morning.

c)

Stock Prices move in trends.

d)

History repeats itself.

9.

If the candle is green, it means that the closing price was higher than the opening price.

a)

TRUE

b)

FALSE

10.

If it is red, it means the opening price was lower than the closing price.

a)

TRUE

b)

FALSE

11.

When are you advised to BUY stocks?

a)

When the trading volume of that company is high.

b)

When the trading volume of that company is low.

c)

When the chart shows an downtrend.

d)

When the prices are at resistance level.

12.

What tells you the number of shares that were bought and sold in a particular time frame (usually a day). You can see this shown as a bar graph at the bottom of the stock chart.

a)

Moving Averages

b)

Volume

c)

Opening Price

d)

Closing Price

13.

Technical Analysis is best viewed using

a)

Graphs

b)

Charts

c)

Pictures

d)

Maps

14.

What is the most important element in a chart?

a)

Volume

b)

Price

c)

Bid

d)

Ask

15.

The last price traded for the day and used for analysis.

a)

Close

b)

Open

c)

High

d)

Low

16.

What represent the X axis of the chart?

a)

Buy

b)

Time

c)

Sell

d)

Hold

17.

When the closing price is lower than the opening price in a candlestick chart.

a)

Hammer

b)

Stop loss

c)

Bearish

d)

Sell

18.

One of the methods used to analyze securities and make investment decisions

a)

Technical analysis

b)

Valuation

c)

Market analysis

d)

Balance sheet

19.

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

20.

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