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Questions and Answers
What is the primary focus of technical analysis?
What is the primary focus of technical analysis?
- Evaluating a company's intrinsic value
- Studying past market data, primarily price and volume, to forecast future price movements (correct)
- Studying past market data, primarily price and volume, to forecast future price movements
- Researching company fundamentals
What is the first principle of technical analysis?
What is the first principle of technical analysis?
- Prices move randomly
- The market discounts everything (correct)
- Only economic data affects prices
- Trends are not identifiable
Which type of chart is commonly used in technical analysis?
Which type of chart is commonly used in technical analysis?
- Line chart
- Bar chart
- Candlestick chart
- All of the above (correct)
What do support and resistance levels indicate?
What do support and resistance levels indicate?
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What is the purpose of moving averages in technical analysis?
What is the purpose of moving averages in technical analysis?
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What does the Relative Strength Index (RSI) measure?
What does the Relative Strength Index (RSI) measure?
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What is the MACD used for in technical analysis?
What is the MACD used for in technical analysis?
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What do Bollinger Bands help traders identify?
What do Bollinger Bands help traders identify?
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What is the benefit of practicing technical analysis with paper trading?
What is the benefit of practicing technical analysis with paper trading?
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Why is it important to stay informed and continuously educate yourself about new techniques and tools in technical analysis?
Why is it important to stay informed and continuously educate yourself about new techniques and tools in technical analysis?
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