The principle of 'change in polarity' in technical analysis refers to:
Explanation
Polarity changes occur when a barrier (support/resistance) is broken and its role flips.
Other questions
Which of the following is one of the three key principles upon which technical analysis is based?
Technical analysis primarily differs from fundamental analysis in that technical analysis:
In a candlestick chart, a shaded or filled body typically indicates that:
Which type of chart displays the high, low, and closing prices for each period as a vertical line with a point or dash on the right side?
An analyst observing a stock index that has increased exponentially over several decades would most likely use which type of scale on the vertical axis?
A market is defined as being in an uptrend if prices are consistently reaching:
In a head-and-shoulders pattern, the 'neckline' connects:
A head-and-shoulders pattern has a neckline at $55 and a head at $80. If the price breaks down through the neckline, the projected price target is closest to:
Which of the following is considered a continuation pattern?
A 'golden cross' occurs when:
Bollinger bands are constructed by drawing lines a specific number of standard deviations above and below a:
In the context of Bollinger bands, a 'squeeze' refers to:
Which of the following is a momentum oscillator that is calculated as 100 times the difference between the latest closing price and the closing price n periods earlier?
An RSI value of greater than 70 typically indicates that a market is:
The MACD line is calculated as the difference between:
In the Stochastic oscillator, the '%K' line represents:
Divergence occurs when:
The Put/Call ratio is generally viewed as a contrarian indicator. An extremely high ratio suggests:
The Volatility Index (VIX) measures the volatility of options on which underlying index?
According to technical analysts, an increase in total margin debt outstanding suggests:
Intermarket analysis relies heavily on which type of chart to identify attractive asset classes?
In a relative strength chart comparing Asset A to Asset B, an increasing line indicates that:
Using technical analysis to identify markets and sectors that have outperformed others before making tactical asset allocation decisions is an example of:
A bottom-up approach to portfolio management using technical analysis typically begins with:
Which of the following chart types includes opening prices?
If a stock's price breaks through a resistance level, the principle of change in polarity suggests that:
Which pattern is generally considered a reversal pattern at the end of a downtrend?
A 'dead cross' is viewed as a sell signal and occurs when:
A 'contrarian strategy' using Bollinger bands would involve:
The MACD signal line is defined as:
Technical analysts believe that identifying patterns in trading prices and volumes is useful because:
Which of the following describes a 'support level'?
Which type of chart pattern typically implies a pause in the trend rather than a reversal?
In the Stochastic oscillator, the trading signal is often generated when:
A technical analyst would view a very high VIX level as a:
Volume charts are usually displayed:
An uptrend line on a chart connects the:
If a stock's price is 50 and the 200-day moving average is 45, the moving average acts as:
A 'triangle' pattern in technical analysis indicates:
Which technical indicator calculates the ratio of an asset's closing price to a benchmark value?
In the context of the RSI, a value of 20 would most likely indicate:
Which of the following is an advantage of technical analysis over fundamental analysis?
A technical analyst using a top-down approach would likely start by analyzing:
When the short-term moving average crosses below the long-term moving average, it is known as a:
Which indicator is calculated as the ratio of total price increases to total price decreases over a selected number of periods?
A 'double top' pattern is most accurately described as:
Technical analysis assumes that the efficient markets hypothesis:
Which of the following refers to a situation where an oscillator shows a different pattern than prices?
Which sentiment indicator is based on the volume of options trading?