Intro to trading 3

Which type of triangle pattern anticipates an upside breakout?

Which type of triangle pattern anticipates a downside breakout?

Which time frame is commonly used by intraday traders for analyzing price movement?

What is technical analysis used to predict?

What is the primary theory behind the validity of technical analysis?

Which type of chart is commonly used to show price movement on a chart?

What does a blue candlestick body indicate?

What does a doji candlestick indicate?

What does the length of the upper and/or lower shadows on a doji candlestick indicate?

What range of ADX readings represents a beginning or moderate strength trend?

What does a downsloping ADX line indicate?

Which candlestick pattern indicates a possible upcoming reversal to the upside after a prolonged downtrend?

What does the gravestone doji indicate?

What is the primary purpose of using moving averages in technical analysis?

What are Fibonacci ratios commonly used for in technical analysis?

The ADX is calculated to reflect the expansion or contraction of the price range of a security over a period of time. What is the traditional setting for the ADX indicator?

Why do many technical analysts prefer to see only the ADX line instead of the +DMI and -DMI lines?

Which of the following is true about Fibonacci retracements?

Which of the following is true about Fibonacci extensions?

What is the purpose of momentum indicators in technical analysis?

Technical analysis is a method used to predict the probable future price movement of a security based on market data.

Technical traders believe that current or past price action in the market is the most reliable indicator of future price action.

Intraday traders prefer analyzing price movement on longer time frame charts, such as the 4-hour or daily charts.

True or false: A dragonfly doji indicates a possible upcoming reversal to the upside after a prolonged downtrend.

True or false: Moving averages are the most widely-used technical indicator in trading strategies.

True or false: Fibonacci levels are commonly used to pinpoint trading opportunities and profit targets during sustained trends.

True or false: Fibonacci ratios complement each other and can be used to identify trade entry points during price retracements.

True or false: Daily pivot points are calculated using the previous trading day's high, low, opening, and closing prices.

True or false: Fibonacci extensions indicate how much higher price may extend when the overall uptrend resumes.

True or false: Momentum indicators help investors determine market direction.

True or false: The ADX indicator measures trend strength and can serve as an early warning signal for a trend coming to an end.

Ascending triangles are a bearish formation that anticipates a downside breakout.

Descending triangles are a bullish formation that anticipates an upside breakout.

Symmetrical triangles indicate the continuation of a bullish or bearish market.

True or false: The ADX indicator is used to determine whether a market is trending or ranging?

True or false: An ADX reading below 25 indicates a trending market?

True or false: The slope of the ADX line can indicate the strength of a trend?

True or false: Traders who hold market positions overnight and for long periods of time are more inclined to analyze markets using hourly, 4-hour, daily, or even weekly charts.

True or false: Price movement that occurs within a 15-minute time span may be very significant for a trader who is looking for an opportunity to realize a profit from price changes occurring during one trading day.

True or false: Candlestick charting is the most commonly used method of showing price movement on a chart.

True or false: Each candlestick on an hourly chart shows the price action for one hour, while each candlestick on a 4-hour chart shows the price action during each 4-hour time period.

True or false: The MACD is a trend direction indicator.