Which of the following is one of the three key principles upon which technical analysis is based?

Correct answer: Market prices reflect all known information.

Explanation

The three core principles of technical analysis are that prices reflect all information, trends persist, and history repeats.

Other questions

Question 2

Technical analysis primarily differs from fundamental analysis in that technical analysis:

Question 3

In a candlestick chart, a shaded or filled body typically indicates that:

Question 4

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?

Question 5

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?

Question 6

A market is defined as being in an uptrend if prices are consistently reaching:

Question 7

The principle of 'change in polarity' in technical analysis refers to:

Question 8

In a head-and-shoulders pattern, the 'neckline' connects:

Question 9

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:

Question 10

Which of the following is considered a continuation pattern?

Question 11

A 'golden cross' occurs when:

Question 12

Bollinger bands are constructed by drawing lines a specific number of standard deviations above and below a:

Question 13

In the context of Bollinger bands, a 'squeeze' refers to:

Question 14

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?

Question 15

An RSI value of greater than 70 typically indicates that a market is:

Question 16

The MACD line is calculated as the difference between:

Question 17

In the Stochastic oscillator, the '%K' line represents:

Question 18

Divergence occurs when:

Question 19

The Put/Call ratio is generally viewed as a contrarian indicator. An extremely high ratio suggests:

Question 20

The Volatility Index (VIX) measures the volatility of options on which underlying index?

Question 21

According to technical analysts, an increase in total margin debt outstanding suggests:

Question 22

Intermarket analysis relies heavily on which type of chart to identify attractive asset classes?

Question 23

In a relative strength chart comparing Asset A to Asset B, an increasing line indicates that:

Question 24

Using technical analysis to identify markets and sectors that have outperformed others before making tactical asset allocation decisions is an example of:

Question 25

A bottom-up approach to portfolio management using technical analysis typically begins with:

Question 26

Which of the following chart types includes opening prices?

Question 27

If a stock's price breaks through a resistance level, the principle of change in polarity suggests that:

Question 28

Which pattern is generally considered a reversal pattern at the end of a downtrend?

Question 29

A 'dead cross' is viewed as a sell signal and occurs when:

Question 30

A 'contrarian strategy' using Bollinger bands would involve:

Question 31

The MACD signal line is defined as:

Question 32

Technical analysts believe that identifying patterns in trading prices and volumes is useful because:

Question 33

Which of the following describes a 'support level'?

Question 34

Which type of chart pattern typically implies a pause in the trend rather than a reversal?

Question 35

In the Stochastic oscillator, the trading signal is often generated when:

Question 36

A technical analyst would view a very high VIX level as a:

Question 37

Volume charts are usually displayed:

Question 38

An uptrend line on a chart connects the:

Question 39

If a stock's price is 50 and the 200-day moving average is 45, the moving average acts as:

Question 40

A 'triangle' pattern in technical analysis indicates:

Question 41

Which technical indicator calculates the ratio of an asset's closing price to a benchmark value?

Question 42

In the context of the RSI, a value of 20 would most likely indicate:

Question 43

Which of the following is an advantage of technical analysis over fundamental analysis?

Question 44

A technical analyst using a top-down approach would likely start by analyzing:

Question 45

When the short-term moving average crosses below the long-term moving average, it is known as a:

Question 46

Which indicator is calculated as the ratio of total price increases to total price decreases over a selected number of periods?

Question 47

A 'double top' pattern is most accurately described as:

Question 48

Technical analysis assumes that the efficient markets hypothesis:

Question 49

Which of the following refers to a situation where an oscillator shows a different pattern than prices?

Question 50

Which sentiment indicator is based on the volume of options trading?