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Technical Analysis -TYBFM

Total questions: 56

Worksheet time: 56mins

Name
Class
Date
1.

What is technical analysis primarily used for?

a)

Predicting long-term economic trends

b)

Evaluating a company's financial health

c)

Analyzing past market data to forecast future price movements

d)

Determining the intrinsic value of a stock

2.

What does the term "support" refer to in technical analysis?

a)

The highest price level a stock can reach

b)

A price level where a downtrend can be expected to pause due to a concentration of demand

c)

The average price of a stock over a period of time

d)

A line connecting the highest points on a price chart

3.

What type of chart is most commonly used in technical analysis to plot stock prices?

a)

Pie Chart

b)

Bar Chart

c)

Candlestick Chart

d)

Line Chart

4.

What does the term "resistance" refer to in technical analysis?

a)

The lowest price level a stock can reach

b)

A price level where an uptrend can be expected to pause due to a concentration of selling

c)

The average price of a stock over a period of time

d)

A line connecting the lowest points on a price chart

5.

What does the term "volume" refer to in technical analysis?

a)

The number of shares traded in a given period.

b)

The highest price level a stock can reach.

c)

The average price of a stock over a period of time.

d)

The market capitalization of a stock.

6.

What is the purpose of a "trend line" in technical analysis?

a)

What is the purpose of a "trend line" in technical analysis?

b)

To identify the direction of the market trend.

c)

To measure market volatility.

d)

To compare the performance of different stocks.

7.

What is the name of the software we used?

a)

Trending view

b)

Trading view

c)

Tremendous view

d)

Total view

8.

Which time frame is used for long term analysis?

a)

5 min

b)

30 min

c)

1 week

d)

15 min

9.

A stock's price is increasing. It is forming higher high and higher low , what does that indicate?

a)

Bearish trend

b)

Neutral

c)

Bullish trend

d)

None

10.

A stock's price is falling. It is forming lower highs and lower low, what trend does this indicate?

a)

Bearish trend

b)

Bullish trend

c)

Neutral

d)

None

11.

An upward moving market is indicated by which Animal?

a)

Horse

b)

Bear

c)

Lion

d)

Bull

12.

Which is the most popular way to display stock charts?

a)

Chopsticks

b)

Candlesticks

c)

Walkingsticks

d)

Bamboo sticks

13.

Candlesticks charts originated from which counntry.

a)

India

b)

Germany

c)

USA

d)

Japan

14.

Does Technical analysis help in finding the time of investment?

a)

True

b)

False

15.

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

16.

What are the key principles of technical analysis?

a)

Market sentiment, news analysis, and company financials

b)

Fundamental analysis, qualitative analysis, and quantitative analysis

c)

The key principles of technical analysis include trend analysis, support and resistance levels, and chart patterns.

d)

Economic analysis, political analysis, and social analysis

17.

Explain the concept of support and resistance in technical analysis.

a)

Support and resistance are key concepts in technical analysis used to identify potential price levels where the price may reverse or experience a significant increase in trading activity.

b)

Support and resistance are used to predict the weather in technical analysis

c)

Support and resistance only apply to fundamental analysis

d)

Support and resistance are irrelevant in technical analysis

18.

What are the different types of charts used in technical analysis?

a)

Histograms, flow charts, timeline charts, and Gantt charts

b)

Pie charts, scatter plots, area charts, and radar charts

c)

Pictorial charts, organization charts, process flow charts, and control charts

d)

Line charts, bar charts, candlestick charts, and point and figure charts

19.

How is volume used in technical analysis?

a)

To determine the age of a stock

b)

To predict the weather patterns

c)

To calculate the distance between two data points

d)

To measure the strength of a price movement.

20.

Explain the concept of trend lines in technical analysis.

a)

Trend lines in technical analysis are used to identify and visualize the direction of a security's price movement.

b)

Trend lines are used to determine the best time to buy or sell stocks.

c)

Trend lines are used to calculate the average price of a security over a period of time.

d)

Trend lines are used to predict the weather patterns for a particular region.

21.

How does technical analysis differ from fundamental analysis?

a)

Technical analysis focuses on predicting future stock prices, while fundamental analysis focuses on historical data

b)

Technical analysis relies on news and market sentiment, while fundamental analysis relies on chart patterns

c)

Technical analysis uses financial ratios and earnings reports, while fundamental analysis uses moving averages and support/resistance levels

d)

Technical analysis focuses on historical price and volume data, while fundamental analysis evaluates a company's financial health and performance.

22.

Discuss the limitations of technical analysis.

a)

Limitations of technical analysis include its inability to predict future events, its reliance on historical data, and its susceptibility to market manipulation.

b)

It is not susceptible to market manipulation

c)

It can accurately predict future events

d)

It does not rely on historical data

23.

Explain the importance of risk management in technical analysis.

a)

It is only relevant for short-term trading

b)

It only benefits experienced traders

c)

It helps traders and investors to identify and mitigate potential risks associated with their investment decisions.

d)

It has no impact on investment decisions

24.

He formulated the Dow Theory.

a)

Charles Darwin

b)

Da Vinci

c)

Charles Dow

d)

Alden Richards

25.

This assumption states that "in a certain situations you might notice that everyone might react in a similar way."

a)

Price moves in trend

b)

History tends to repeat itself

c)

The market discounts everything

d)

Prices will always be exactly the same

26.

One assumption of technical analysis is that price move in

a)

Tandem

b)

Course

c)

Trends

d)

Group

27.

Technical Analysis is best viewed using

a)

Graphs

b)

Charts

c)

Pictures

d)

Maps

28.

What is the most important element in a chart?

a)

Volume

b)

Price

c)

Bid

d)

Ask

29.

A continuous primary upward trend

a)

Correction

b)

Bull market

c)

Resistance

d)

Support

30.

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

a)

Close

b)

Open

c)

High

d)

Low

31.

What represent the X axis of the chart?

a)

Buy

b)

Time

c)

Sell

d)

Hold

32.

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

a)

Hammer

b)

Stop loss

c)

Bearish

d)

Sell

33.

Charles Dow digelar sebagai "father of modern technical analysis".

a)

b)

34.

What are the 3 Kinds of Trends in the Trend Analysis?

a)

Downward, Upward, No Trend

b)

Downward, Upward, Sideways

c)

Downward, Sideways, Intermittent

d)

Downward, Upward, Wavy

35.

This is the point where the stock price usually starts going down because there is too much supply and not enough demand.

a)

Support Level

b)

Resistance Level

c)

Upward Trend

d)

Sideways Trend

36.

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.

37.

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

a)

TRUE

b)

FALSE

38.

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.

39.

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

a)

TRUE

b)

FALSE

40.

This is the point where the stock price usually starts going down because there is too much supply and not enough demand.

a)

Support Level

b)

Resistance Level

c)

Upward Trend

d)

Sideways Trend

41.

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

42.

Which one of the following is a bullish reversal pattern?

a)

a) Shooting Star

b)

Hanging Man

c)

Hammer

d)

Doji

43.

The Shooting Star pattern usually appears:

a)

At the bottom of a downtrend

b)

In the middle of a trend

c)

At the top of an uptrend

d)

Randomly

44.

A Doji candle indicates:

a)

Strong buying pressure

b)

Trend continuation

c)

Market indecision

d)

Bearish signal

45.

Which of the following is a bullish two-candle pattern?

a)

b)

c)

d)

Shooting Star

46.

In a Bearish Engulfing pattern, the second candle:

a)

Is smaller than the first

b)

Closes higher than it opens

c)

Completely covers the first candle

d)

Is a Doji

47.

Which chart connects closing prices over a period with a line?

a)

b)

Candlestick chart

c)

Line chart

d)

Point & Figure chart

48.

Which chart shows Open, High, Low, and Close (OHLC) prices?

a)

Line chart

b)

Bar Chart

c)

Area Chart

d)

Scatter chart

49.

A trader sees a Hammer after a downtrend. What should they consider doing?

a)

Selling more

b)

Staying neutral

c)

Preparing to buy

d)

Shorting the stock

50.

What is the Bullish Piercing Pattern?

a)

A bullish candle that fully engulfs the previous candle

b)

A bullish candle that opens lower but closes above the midpoint of the previous bearish candle

c)

A Doji that appears after a downtrend

d)

Two candles of the same color

51.

Where does the Bullish Piercing pattern usually appear?

a)

At the top of an uptrend

b)

During consolidation

c)

At the bottom of a downtrend

d)

In sideways market

52.

Which statement is true about the Bearish Piercing Pattern?

a)

It is the inverse of the Bullish Piercing pattern

b)

It occurs in a downtrend and signals continuation

c)

The second candle must close below the low of the first candle

d)

It starts with a green candle and ends with a hammer

53.

What confirms a Bearish Piercing Pattern?

a)

Volume drop

b)

Second candle opens above and closes below the midpoint of the previous bullish candle

c)

RSI above 70

d)

Appearance of a Doji

54.

What defines a Bullish Harami candlestick pattern?

a)

A long green candle followed by a longer red candle

b)

A large red candle followed by a small green candle inside the body of the red candle

c)

A single green candle after a downtrend

d)

A pattern where the second candle is a Doji only

55.

After a long downtrend, a trader notices a large red candle followed by a small green candle completely inside the red body. What should they consider?

a)

The trend is continuing downward

b)

It's a Bullish Harami; reversal is possible

c)

Wait for volume breakout

d)

Bearish momentum is strong

56.

When is the Bearish Harami pattern most significant?

a)

In a range-bound market

b)

At the start of a downtrend

c)

At the top of an uptrend

d)

During sideways movement