Technical Analysis – The Complete Resource for the Financial Markets
Kirkpatrick-Dahlquist
Chapter 1-6 – Introduction to Technical Analysis – pages 3-84
Which of the following is not an underlying assumption of technical analysis?
a. prices move in trends
b. market action discounts everything
c. the consensus is always wrong *
d. history is cyclical
Who is known as the “father of modern technical analysis”?
a. William Peter Hamilton
b. Robert Edwards
c. John Magee
d. Charles H. Dow *
Which of the following is not a primary application of technical analysis?
a. identifying trends
b. establishing price targets
c. providing long-term market forecasts *
d. identifying turning points
Which of the following is not an underlying assumption of technical analysis?
a. prices move in trends
b. consensus is usually wrong
c. history is cyclical
d. risk is quantifiable *
In the equity market, a primary trend lasts
a. from 4 to 13 weeks
b. longer than one year
c. 37 to 52 weeks
d. from 2.2 to 3.7 years *
e. none of the above
The longest-term trend in the market is the
a. primary *
b. cyclical
c. secondary
d. none of the above
Technical analysts assume that price is determined by the interaction of supply and demand
a. True *
b. False
Technical analysis is rooted in the basic premise that
a. price behavior in the financial markets is random
b. price behavior in the financial markets moves in trends that can be measured *
c. price behavior in the financial markets can only be understood by analysis of the underlying economic conditions surrounding the markets
d. all of the above
The “bible of technical analysis,” written in 1948 is:
a. Security Analysis by Graham & Dodd
b. Technical Analysis of Stock Trends by Edwards & Magee *
c. Technical Analysis and Market Profits by Richard Schabacker
d. Stock Market Technique by Richard Wyckoff
Japanese candlestick charts where introduced into U.S. technical analysis in the late ’80s by:
a. J. Welles Wilder, Jr.
b. Joseph Granville
c. Steve Nison *
d. Gerald Appel
The objective of the Dow Theory is to determine
a. changes in market psychology
b. the likelihood of volume reversals
c. the primary direction of the stock market *
d. timing of market bottoms
e. none of the above
According to Dow Theory, a secondary trend normally extends from
a. one to three years
b. two to four years
c. one to three weeks
d. three weeks to several months *
e. none of the above
In order for a Dow Theory sell signal to be confirmed
a. The Dow Jones Industrials (DJI) and the Dow Transports (DJT) must peak simultaneously
b. The DJI and DJT must fall io confirm at the highs
c. Both the DJI and DJT must break below an important intermediate term support level
d. b and c
The Dow Theory uses only
a. High prices
b. Low prices
c. Closing prices
d. All of the above
In the Dow Theory, the most important price is the
a. open
b. high
c. low
d. close *
In order for a Dow Theory sell signal to be confirmed
a. The Dow Jones Industrials (DJI) and the Dow Transports (DJT) must peak simultaneously
b. The DJI and DJT must fall to confirm at the highs
c. Both the DJI and DJT must break below an important intermediate-term support level
d. b and c *