18 Questions
What is the primary function of continuation patterns in technical analysis?
To provide an advanced warning of a trend resuming after a consolidation period
What is the characteristic of a flag pattern in technical analysis?
A parallel channel consolidation period
What is a triple top in technical analysis?
A bearish reversal pattern
Which of the following is NOT a type of continuation pattern?
Triple Top
What is the primary difference between a triple top and a triple bottom?
The direction of the trend before the formation
Which of the following continuation patterns is NOT mentioned in the text?
Head and Shoulders
What is the term used to describe the rectangle in Figure 8.5?
Reversal pattern
What type of pattern is formed when the price hits a resistance level, breaks through, and then hits the resistance level again?
Head-and-shoulders top
What is the typical volume characteristic during the formation of the left shoulder?
Heaviest activity
What is the term used to describe the pattern that forms when the security passes from strong, informed participants to weak, uninformed ones?
Distribution area
What is the significance of the price pushing through line AA in Figure 8.6?
A victory for the buyers has been achieved
What type of pattern is formed when the price hits a support level, breaks through, and then hits the support level again?
Head-and-shoulders bottom
What determines whether a pennant pattern is bullish or bearish?
The trend before the pennant began to form
What is the primary difference between a pennant and a triangle pattern?
The duration of the pattern formation
What is the characteristic shape of a symmetrical triangle?
A pattern with two trendlines that converge
What happens to the stock price as a pennant pattern forms?
It moves into a tighter consolidation range
What type of trend is associated with a bearish triangle?
A downtrend
What determines the direction of a triangle pattern?
The trend before the triangle began to form
This quiz covers the basics of flags and pennants, which are continuation patterns in stock market trading. Learn how to identify and analyze these patterns to make informed investment decisions.
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