The Put/Call ratio is generally viewed as a contrarian indicator. An extremely high ratio suggests:
Explanation
A high Put/Call ratio means many investors are buying puts (betting on a drop), which contrarians view as a sign the market is oversold and due for a bounce.
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:
The principle of 'change in polarity' in technical analysis refers to:
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 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?